Central banks will meet this week, with the Federal Reserve, the European Central Bank and the Bank of England expected to raise their key rates by 50 basis points. Markets remain quiet in anticipation. Amgen is the latest bidder in the $26 billion Horizon Therapeutics auction, and Microsoft is set to acquire a stake in the London Stock Exchange in a major deal to sell Azure services. The number of COVID cases in China seems to be skyrocketing, hitting local assets and oil prices. Here’s what you need to know about the financial market on Monday, December 12.

1. A new round of monetary policy tightening

The curtain rises on a week dominated by U.S. and European central bank meetings that are likely to lead to another tightening of global financial conditions.

The U.S. Federal Reserve is expected to raise the target range for the federal funds rate by 50 basis points to an upper limit of 4.50% on Wednesday after four giant 75 basis point moves at each of its last four meetings. The European Central Bank is also expected to follow suit on Thursday, along with the Bank of England and the Swiss National Bank.

Any doubts about a Bank of England rate hike this week were likely removed by earlier data showing the UK economy recovered slightly more than expected in the month after Queen Elizabeth’s funeral, although a recession over the next six months seems inevitable.

2. Amgen participates in the Horizon deal

Amgen (NASDAQ:AMGN) is preparing for a deal to buy Horizon Therapeutics (NASDAQ:HZNP) after French rival Sanofi (EPA:SASY) said it would withdraw from the drugmaker’s auction over the weekend, leaving Amgen as the sole bidder. Johnson & Johnson (NYSE:JNJ) has already withdrawn its bid.

The deal, valued at more than $26 billion, would be the largest in Amgen’s history and could add $4 billion a year to Amgen’s annual revenue, according to some estimates.

Horizon develops drugs to treat rare autoimmune and acute inflammatory diseases. Its best-selling product is Tepezza, which is used to treat thyroid-related eye diseases. Amgen shares fell 3.1% in the premarket on this news, while Horizon shares rose 14%.

3- Stocks are set to rise; Rivian freezes deal with Germany and Microsoft buys LSE

US stock markets are otherwise expected to open modestly higher later in the day, although trading volumes will be moderate and many participants will actually be sidelined ahead of the Federal Reserve meeting

By 06:30 ET (11:30 GMT), Dow Jones futures were up 58 points, or 0.2%, while S&P 500 futures were up 0.3% and Nasdaq 100 futures were up 0.4%. The three major money indexes lost between 1.4% and 2.1% last week on concerns that the Federal Reserve will continue tightening policy longer than previously thought.

Other stocks likely to be in focus later in the day are Microsoft (NASDAQ:MSFT), which is set to acquire a 4% stake in London Stock Exchange Group (LON:LSEG) in exchange for plans for a 10-year partnership and use of Azure hosting. Azure CEO Scott Guthrie is expected to take a seat on the board as part of the deal.

Also in the spotlight will be Rivian (NASDAQ:RIVN), which has put on hold a project to launch electric van production in Europe in partnership with Mercedes (ETR:MBGn). Rivian shares are down 5% in the premarket, while Mercedes shares are down 0.7% in Frankfurt.

4. Concerns about COVID in China are increasing

Chinese stock indexes fell along with the yuan after authorities announced a sharp rise in the number of calls to the country’s clinics.

The figures, along with numerous unconfirmed reports that the health service is under increasing pressure, show how quickly COVID-19 has spread since travel restrictions were lifted earlier this month in response to mass protests.

Beijing clinics admitted 22,000 people on Sunday, 16 times more than a week earlier. Other media reports noted long lines of people outside hospitals waiting for treatment and disruptions to delivery services because couriers were sick. State media urged people not to call the ambulance hotline unless they were seriously ill.

5. Oil cheapens due to news from China, Citi cuts forecast

Crude oil prices tested 13-month lows overnight in response to COVID-19 news out of China that cast increasing doubt on the country’s growth prospects for the next six months. Analysts at Citigroup (NYSE:C) cut their average forecast for oil next year by 10% to $80 a barrel.

That overshadowed comments from Russian President Vladimir Putin, who warned that Russia could cut oil production in response to Western moves to curb prices for the country’s exports.