European stocks are seen opening higher on Monday after progressive Democrats signaled Sunday they are willing to compromise to get U.S. President Joe Biden’s sweeping domestic agenda through Congress.
However, as party leaders regroup after last week’s political recriminations, the most important issues remain unsettled.
Asian markets traded mixed, with Japan’s Nikkei falling more than 1 percent as investors await a policy speech by Japan’s new leader Fumio Kishida and the unveiling of the new cabinet.
Elsewhere, Hong Kong stocks hit one-year low after shares in the Chinese developer and its property management arm were halted from trading amid speculation on asset sales.
Gold inched lower and the dollar rebounded with the Treasury yields as investors looked ahead to the release of U.S. jobs data on Friday for fresh clues on the health of the world’s biggest economy. A strong reading may put pressure on the Federal Reserve to act sooner than later.
Oil steadied in Asian trade ahead of a meeting between OPEC and its key allies to decide whether to ramp up oil production.
Unemployment data from Spain and consumer price figures from Switzerland are due later in the session, headlining a light day for the European economic news.
U.S. stocks rose sharply on Friday as the government avoided a shutdown, a trial of COVID-19 treatment showed promise and treasury yields extended a pullback after the release of mixed economic data.
The Dow climbed 1.4 percent, the S&P 500 rallied 1.2 percent and the tech-heavy Nasdaq Composite index added 0.8 percent.
European stocks declined on Friday on worries about rising inflation, slowing growth and growing expectations of U.S. tapering by year-end. The pan European Stoxx 600 eased 0.4 percent.
The German DAX dropped 0.7 percent, France’s CAC 40 index finished marginally lower and the U.K.’s FTSE 100 shed 0.8 percent.
Source: Read Full Article