*Fed seen hiking 25 bps, ECB and BOE by 50 bps*Technology giants lead host of earnings results*Shares edge down after roaring January rallySYDNEY/LONDON, Jan 30 (Reuters) - Shares slipped on
Monday at the start of an agenda-setting week for markets in
which likely interest rate hikes in Europe and the United
States, as well as U.S. jobs and wage data will give markets a
fresh update on the battle against inflation.Investors expect the Federal Reserve will raise rates by 25
basis points on Wednesday, followed the day after by half-point
hikes from the Bank of England and European Central Bank, and
any deviation from that script would be a real shock.Earnings from tech giants will also test the mettle of Wall
Street bulls, who are looking to propel the Nasdaq to its best
January since 2001.Europe's benchmark STOXX index fell 0.5% on Monday morning,
echoing a slight dip in MSCI's broadest index of Asia-Pacific
shares outside Japan, which has surged 11% in
January so far as China's reopening bolsters its economy.Meanwhile, U.S. stocks were set to follow the nervous
Monday mood with S&P 500 futures and Nasdaq futures
down nearly 1%, as investors await guidance later in the
week on the Federal Reserve's policy.Analysts expect a hawkish tone suggesting that more needs to
be done to tame inflation."With U.S. labour markets still tight, core inflation
elevated and financial conditions easing, Fed Chair Powell's
tone will be hawkish, stressing that a downshifting to a 25bp
hike doesn't mean a pause is coming," said Bruce Kasman, chief
economist at JPMorgan, who expects another rise in March."We also look for him to continue to push back against
market pricing of rate cuts later this year."There is a lot of pushing to do given futures
currently expect rates to peak at 5% in March, only to fall back
to 4.5% by year end.The dollar index was flat ahead of the data, on
course for a fourth straight monthly loss of more than 1.5% on
growing expectations that the Fed is nearing the end of its
rate-hike cycle.APPLE'S COREYields on 10-year notes have fallen 33 basis
points so far this month to 3.50%, essentially due to easing
financial conditions even as the Fed talks tough on tightening.That dovish outlook will also be tested by data on U.S.
payrolls, the employment cost index and various ISM surveys.Reading on EU inflation could be important for whether the
ECB signals a half-point rate rise for March, or opens the door
to a slowdown in the pace of tightening.As for Wall Street's recent rally, much will depend on
earnings from Apple Inc, Amazon.com, Alphabet
Inc and Meta Platforms, among many others."Apple will give a glimpse into the overall demand story for
consumers globally and a snapshot of the China supply chain
issues starting to slowly abate," wrote analysts at Wedbush."Based on our recent Asia supply chain checks we believe
iPhone 14 Pro demand is holding up firmer than expected," they
added. "Apple will likely cut some costs around the edges, but
we do not expect mass layoffs."Market pricing of early Fed easing has been a burden for the
dollar, which has lost 1.6% so far this month to stand at
101.790 against a basket of major currencies.The euro is up 1.5% for January at $1.0878 and
just off a nine-month top. The dollar has even lost 1.3% on the
yen to 129.27 despite the Bank of Japan's dogged
defence of its ultra-easy policies.The drop in the dollar and yields has been a boon for gold,
which is up 5.8% for the month so far at $1,930 an ounce.The precious metal was flat on Monday ahead of the slew of
key central bank moves and data releases.China's rapid reopening is seen as a windfall for
commodities in general, supporting everything from copper to
iron ore to oil prices.The oil market was hesitant amid concerns the likely Fed
rate hikes could choke fuel demand, with Brent down
nearly 1% $85.88 a barrel, while U.S. crude eased 87
cents to $78.8.(Reporting by Wayne Cole and Lawrence White; Editing by
Christopher Cushing and Arun Koyyur)