Week ahead for markets: Sell-off raises fears of continuing slide

Following Friday's sharp selloff in global markets, risk-off sentiment may continue to dominate market movements. However, investors might get a reprieve as economic data is relatively light this week.

In Europe, major economies will release their final service PMIs, offering more insights into the region's inflation trajectory. Additionally, Novo Nordisk, the largest European company, is set to report quarterly earnings alongside its US competitor, Eli Lilly. 

Several major trends in the financial markets are worth noting: The euro strengthened against the dollar on Friday, being seen as a haven currency.

Equities, particularly technology shares, experienced sharp declines. Global government bond yields fell sharply due to growing expectations that central banks will deliver more rate cuts. Commodity prices rose, buoyed by a softened US dollar. 

Elsewhere, China is scheduled to release its Consumer Price Index (CPI) for July. The Reserve Bank of Australia (RBA) will also decide on its interest rate, offering further clues on the rate path of major central banks.

The market focus will remain on the earnings front as Europe's largest company, Novo Nordisk, is set to report its second-quarter earnings, with its sales of weight-loss drugs, Ozempic and Wegovy, in the spotlight.

Analysts expect the company to continue growing by double digits, exceeding 20% year on year. Investors will also monitor earnings from the Italian bank Banca Popolare di Sondrio, the British retailer Domino's Pizza, and the Swiss mining giant, Glencore. 

On the economic front, major economies, including Spain, France, and Germany, are set to release their final service PMIs for July, with expectations that the services activities of these countries will