By Scott Kanowski
Investing.com — European markets hovered near the stagnation line on Monday as investors eagerly await further hints of a potential interest rate hike path from the Federal Reserve this week .
As of 03:20 EST (07:20 GMT), the European index was only slightly higher by 0.02%. In France, France fell into the red following legislative elections in the country which saw President Emmanuel Macron lose his majority in the National Assembly.
With US markets closed today for the June 16 holiday, trading was choppy throughout the Asian session. Markets have been trying to digest a series of major rate hike announcements from central banks around the world in an effort to contain soaring inflation amid growing fears that such actions could trigger a broader economic downturn.
Later this week, Federal Reserve Chairman Jerome Powell could deliver hawkish testimony to lawmakers in the US House of Representatives on Wednesday and Thursday. The Fed decided to hike 75 basis points at its last meeting – its highest since 1994. Over the weekend, Fed Governor Christopher Waller said he would support another hike in that size next month.
Meanwhile, ECB President Christine Lagarde is due to address the European Parliament in Brussels later today after the central bank unveiled plans last week to raise rates and develop a new tool to prevent a disorderly explosion in borrowing costs in the weaker eurozone countries.
In corporate news, shares of EasyJet (LON:) fell after the low-cost airline said it would cut more flights this summer in response to staff shortages and flight caps in London Gatwick and Amsterdam. Elsewhere, shares of Associated British Foods (LON:) rose after a jump in third-quarter sales of its key business Primark.