Markets in Europe are expected to open lower, the German Ifo will be a highlight

There is a choppy market on Monday. The gold price fell to a one-month low on Monday, along with Asian stocks, falling to their lowest level in two weeks on concern about rapid rates hikes in the U.S. and slowing growth, while the euro plunged to a 25-month low to meet the 1.07 mark.

Due to the strengthening dollar, gold priced in greenbacks became more expensive for holders of other currencies. The dollar index is climbing for the fourth consecutive week heading to the most positive month in near six years.

As investors worry about slowing growth and sharp monetary policy tightening, European stock markets are expected to open lower Monday, although Emmanuel Macron's victory as France's president offers some minor relief.

ECB is about to turn the way

While the ECB has been easing stimulus at the slowest possible pace this year, a spike in inflation is now putting pressure on policymakers to end their nearly decade-long experiment with unconventional support. Inflation remains below the ECB's 2% target according to longer-term forecasts. However, a new estimate shared with policymakers at their meeting on April 14 shows even in 2024, inflation will be still over the target.

Recession fears and demand declines harm oil

Oil prices fell Monday to near two-week lows as worries that China, the world's largest crude importer, will be hit by the COVID outbreak. At the same time, the Federal Reserve is raising interest rates, which can slow down the U.S. economy. It looks like recession fears and demand devastation may prevail over some oil bulls.

On the other hand, the number of U.S. oil and gas rigs increased for the 5th consecutive week on the supply side. After nearly 30 days of disruption, the Russia-Kazakh Caspian Pipeline Consortium resumed full exports on April 22, following repairs at one of its primary loading facilities.

Events of today

Among the more important economic releases in Europe on Monday, the Ifo survey of the business climate in Germany will be the main focus. This survey measures the expectations about business developments in the next six months. Overall, Ifo is expected to indicate that sentiment has deteriorated slightly. In March, the Ifo index rose to 90.8, and however, the April reading is likely to fall to 89.1. This will be the first time since June 2020 that the Ifo index drops below 90.