European stocks head for higher open with progress of U.S. stimulus package in focus

• European stocks are expected to open higher Monday, buoyed by positive U.S. sentiment as the U.S.' Covid relief bill is expected to be approved by the House of Representatives later this week.
• London's FTSE is seen opening 47 points higher at 6,670, Germany's DAX 52 points higher at 13,973, France's CAC 40 up 33 points at 5,813 and Italy's FTSE MIB up 183 points at 23,138, according to IG.

European stocks are expected to open higher Monday, buoyed by positive U.S. sentiment as the U.S.' Covid relief bill is expected to be approved by the House of Representatives later this week.

London's FTSE is seen opening 47 points higher at 6,670, Germany's DAX 52 points higher at 13,973, France's CAC 40 up 33 points at 5,813 and Italy's FTSE MIB up 183 points at 23,138, according to IG.

The expected gains for European markets come as Dow futures rose Sunday evening as a massive U.S. stimulus package headed toward final passage this week.

Futures contracts tied to the Dow Jones Industrial Average added 101 points, or 0.3%. Those for the S&P 500 were up 0.2%, while those for Nasdaq 100 slipped 0.3%, signaling that a recent underperformance by tech stocks may continue on Monday.

The move in futures came after the Senate passed a $1.9 trillion economic relief and stimulus bill on Saturday, paving the way for extensions to unemployment benefits, another round of stimulus checks and aid to state and local governments.

The Democrat-controlled House will pass the bill later this week. President Joe Biden is expected to sign it into law before unemployment aid programs expire on March 14.

Meanwhile, Asia-Pacific markets traded mixed on Monday as investors reacted to the latest U.S. data showing the economy is picking up steam, following a better-than-expected February jobs report released on Friday.

Oil prices are in focus after they jumped over 2% during Asian trading hours on Monday. U.S. crude futures rose 2.22% to $67.56 a barrel and global benchmark Brent added 2.28% to $70.94.

The rise in prices comes after Saudi Arabia said that its oil facilities were targeted by missiles and drones on Sunday. A Houthi military spokesman claimed responsibility for the attacks. Last week, OPEC and its oil-producing allies said the group would keep production largely steady through April.

In Europe Monday, earnings come from Pearson and Direct Line and data releases include Swiss unemployment data for February, preliminary fourth-quarter GDP data for Greece and Dutch inflation data for February.

– CNBC's Jesse Pound and Saheli Roy Choudhury contributed to this market report.

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