European Shares Set To Follow Asian Peers Higher
European stocks look set to open higher on Monday, even as underlying sentiment may remain cautious amid concerns about rising interest rates, slowing global growth and anxiety over peaking corporate earnings.
Asian stock markets recovered from early losses to trade mostly higher while the dollar build on last week’s gains to hold near a 16-month high.
Investors were encouraged after the China Securities Regulatory Commission rolled out a series of measures over the weekend to support the private sector.
Oil prices rose by more than 1 percent after Saudi Arabia’s energy minister said that the country plans to reduce its oil supply to world markets by 500,000 barrels per day in December.
The U.S. economic calendar for this week remains relatively quiet, with reports on consumer prices, retail sales, and industrial production awaited for further clues on the economy and interest rates.
Meanwhile, with a Tuesday deadline looming, the Italian government may submit its revised budget to placate the European Commission. Key industrial output and retail sales data out of China will be unveiled on Wednesday.
U.S. stocks fell on Friday, with a spate of weak earnings, falling energy prices on concerns over a supply glut and worries about inflation weighing on markets.
The Dow dropped 0.8 percent, the tech-heavy Nasdaq Composite tumbled 1.7 percent and the S&P 500 lost 0.9 percent.
European markets also ended mostly lower on Friday to snap two days of gains as investors reacted to hawkish comments from the Federal Reserve.
The pan-European Stoxx Europe 600 index shed 0.4 percent. France’s CAC 40 index and the U.K.’s FTSE 100 both dropped around half a percent while the German DAX finished marginally higher.
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