European Shares Seen Tad Higher On US Soft Landing Hopes
European stocks are seen opening mostly higher Monday on growing hopes the U.S. can achieve a soft landing.
Trading volumes, however, are likely to remain thin due to the Labour Day holiday in the U.S.
Asian markets traded mostly higher after news late last week of a deal to avert possible default at Country Garden.
Also, China’s top economic planner said it would establish a designated department to bolster the country’s faltering private economy.
The dollar eased against a basket of currencies on expectations that the Fed is done with raising rates.
Markets now price in a 93 percent chance of the Fed holding rates steady this month and over 60 percent chance of no more hikes this year.
Gold ticked higher ahead of a slew of U.S. data due this week, including reports on the U.S. trade deficit, factory orders and service sector activity as well as the Federal Reserve’s Beige Book.
Closer home, foreign trade from Germany and quarterly national accounts from Switzerland are the top economic news due today.
Oil prices traded higher in Asian trade on expectations of additional supply cuts from major oil producing nations, led by Russia and Saudi Arabia.
U.S. stocks ended mostly higher on Friday and notched a weekly gain after data showed the labor market cooling and wage growth slowing, supporting optimism the Federal Reserve is nearing the end of its tightening cycle.
Separate data showed U.S. manufacturing contracted for a 10th straight month in August.
The Dow edged up 0.3 percent and the S&P 500 inched up 0.2 percent while the tech-heavy Nasdaq Composite finished marginally lower.
European stocks ended mixed on Friday, giving up early gains on news of more stimulus from Beijing and data showing that the downturn in Eurozone manufacturing eased last month.
The pan-European STOXX 600 closed marginally lower but notched its best weekly gain of 1.5 percent since mid-July.
The German DAX shed 0.7 percent and France’s CAC 40 eased 0.3 percent while the U.K.’s FTSE 100 rose 0.3 percent.
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