(RTTNews) - European stocks look set to open broadly lower on Monday amid signs that the banking crisis is escalating, and a recession might be pulled forward.
Banks would continue to remain in focus as investors react to news of a Credit Suisse bailout by its bigger rival UBS and reports suggesting that at least two major European banks are looking to the Federal Reserve and the ECB for stronger signals of support.
Asian stocks fell broadly, with Chinese markets bucking the weak trend to trade on a flat note after the People's Bank of China cut the CRR by 25 basis points to spur economic growth.
A senior official at China's central bank said the collapse of Silicon Valley Bank showed how rapid monetary policy shifts were having spillover effects.
The Fed's interest rate decision and forward-looking guidance will remain in the spotlight this week, potentially overshadowing reports on new and existing home sales and durable goods orders.
CME Group's FedWatch tool currently indicates a 43.2 percent chance the Fed will leave rates unchanged and a 56.8 percent chance of a 25-basis point rate hike.
Treasuries fell and the dollar fluctuated while gold dipped from 11-month highs. Oil prices extended declines after having suffered their biggest weekly losses in months.
U.S. stocks fell sharply on Friday as regional banks resumed slide on concerns about turmoil in the U.S. banking sector.
In economic releases, U.S. industrial production stagnated in February and consumer sentiment fell for the first time in four months in March while short-term inflation expectations fell to the lowest level in nearly two years, separate reports showed.
The tech-heavy Nasdaq Composite shed 0.7 percent to snap a four-day winning streak, while the Dow tumbled 1.2 percent and the S&P 500 lost 1.1 percent.
European stocks also closed lower on Friday, dragged down by banks.
The pan European STOXX 600 declined 1.2 percent. The German DAX fell 1.3 percent, France's CAC 40 index dropped 1.4 percent and the U.K.'s FTSE 100 lost 1 percent.
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