Economic calendar: US PCE inflation, Caterpillar earnings

• European indices set to open lower

• Core PCE inflation from the United States

• Caterpillar to report earnings today

Futures markets point to a lower opening of the European cash session, following a late-reversal on Wall Street yesterday. However, bearish price gaps for major European blue chips indices are expected to be rather small and not exceed 1%. The day ahead looks interesting especially for investors from Europe with Spanish and German GDP reports scheduled for release. A French report released earlier in the day turned out to be better-than-expected. When it comes to the afternoon session, attention will be focused on a pack of monthly data from the United States, including PCE core inflation for December. Last but not least, investors will be offered earnings from Caterpillar, company seen as bellwether for global industry, as well as oil companies Chevron and Phillips 66.

8:00 am GMT - Spain, GDP report for Q4 2021. Expected: +1.4% QoQ. Previous: +2.6% QoQ

9:00 am GMT - Germany, GDP report for Q4 2021. Expected: -0.3% QoQ. Previous: +1.7% QoQ

1:30 pm GMT - US, monthly data pack for December.

• Personal spending. Expected: -0.5% MoM. Previous: +0.6% MoM

• Personal income. Expected: +0.5% MoM. Previous: +0.4% MoM

• PCE core. Expected: 4.8% YoY. Previous: 4.7% YoY

3:00 pm GMT - US, University of Michigan consumer sentiment for January (final). First release: 68.8.

Top Wall Street earnings reports

• Caterpillar (CAT.US) - before market open

• Chevron (CVX.US) - before market open

• Phillips 66 (PSX.US) - before market open

• V. F. Corporation (VFC.US) - before market open