(Bloomberg) — European stocks look poised for early gains after a strong Asian session, kicking off a week of major central bank decisions and big tech earnings. The yen climbed.

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The Euro Stoxx 50 futures rose 0.5%, with benchmark US contracts also higher. The bullish tone started earlier in Asia, where a key index rose the most in more than two weeks as investors raised bets on Federal Reserve interest rate cuts.

Monetary policy decisions in Japan, the US and the UK will take the center stage this week, after global markets were ravaged by the yen’s recent rally on expectations for the Bank of Japan to hike its key rate. Also in focus are earnings including Apple Inc., Amazon.com Inc and Microsoft Corp. following a stock rout sparked by an underwhelming start to the megacaps reporting season.

Spurred by wagers on monetary tightening in Japan, the yen advanced against all its Group of 10 peers Monday. The long-beleaguered currency has clawed back some of its losses in recent sessions and is now on course to post its best monthly performance versus the dollar this year.

“Watch for the trifecta of central bank policy decisions, namely the FOMC which is likely to remain static but hint at cutting rates soon,” Oversea-Chinese Banking Corp. analysts wrote. The BOJ is likely to announce quantitative tightening, while the Bank of England “is tipped to enact its first rate cut since 2020.”

Treasury 10-year yields declined one basis point to 4.18%. In China, a scorching bond rally that has prompted regulatory concerns about financial risk has extended, sending the benchmark yield there to a record low.

The Fed is likely to signal its plans to cut in September at the conclusion of its meeting on Wednesday, according to economists surveyed by Bloomberg News, a move they say will kick off reductions each quarter through 2025. Money markets are fully pricing a September move, with a chance of two more by year-end, according to swaps data compiled by Bloomberg.

“While the July FOMC meeting is likely too soon to initiate the cut, it is not too early to begin preparations for a rate reduction in September,” Stephen Gallagher, an economist at Societe Generale, wrote in a note to clients.

Just hours before the Fed’s decision, the Bank of Japan is expected to release details of plans to cut monthly bond purchases at the conclusion of its two-day policy meeting on Wednesday, while most economists also see the risk of a rate hike. The yen climbed 2.4% against the dollar last week as traders priced a more than two-thirds chance of a 10 basis point hike, causing a selloff in risk-sensitive developed and emerging market currencies and helping send the Nikkei 225 Index into a technical correction.

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As for the Bank of England, most economists expect it to reduce rates for the first time since the start of the pandemic on Aug. 1, although a close vote is anticipated.

Oil steadied near a six-week low ahead of a key OPEC+ meeting this week, with analysts divided over whether the group will proceed with plans to boost supplies next quarter. While the coalition is seeing to restore supplies it’s withheld from the market for two years in a bid to prop up prices, sputtering economic growth in key consumer China, and new oil supplies from across the Americas, threaten to derail the plans.

Key events this week:

• McDonald’s, Heineken earnings, Monday

• Microsoft earnings, Tuesday

• European inflation and growth data, Tuesday

• Australia CPI, Wednesday

• Bank of Japan policy decision, Wednesday

• Meta Platforms earnings, Wednesday

• Fed interest rate decision and news conference by Chair Jerome Powell, Wednesday

• Bank of England sets official interest rate, Thursday

• Amazon, Apple earnings, Thursday

• US tariffs are due to increase on an array of Chinese imports on Thursday, including EVs, batteries, chips and medical products

• South Korea CPI, Friday

• US employment, factory orders, Friday

Some of the main moves in markets:

Stocks

• S&P 500 futures rose 0.4% as of 2:11 p.m. Tokyo time

• Nikkei 225 futures (OSE) rose 2.3%

• Japan’s Topix rose 2.2%

• Australia’s S&P/ASX 200 rose 0.8%

• Hong Kong’s Hang Seng rose 1.9%

• The Shanghai Composite rose 0.1%

• Euro Stoxx 50 futures rose 0.4%

Currencies

• The Bloomberg Dollar Spot Index was little changed

• The euro was little changed at $1.0860

• The Japanese yen rose 0.2% to 153.40 per dollar

• The offshore yuan was little changed at 7.2629 per dollar

Cryptocurrencies

• Bitcoin rose 2.1% to $69,432.51

• Ether rose 2.6% to $3,344.35

Bonds

Commodities

• West Texas Intermediate crude rose 0.3% to $77.39 a barrel

• Spot gold rose 0.4% to $2,395.67 an ounce

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Matthew Burgess.

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