EU & US Shares Seen Positive At Open
EU & US Shares seen positive at open. European stocks open on a higher note Monday following on from firming share prices in Asian markets. Oil prices rose over 1 % on potential short-covering and the dollar weakened on low U.S. Treasury yields amid the increasing likelihood U.S. Federal Reserve will not raise interest rates again in 2017.
U.S. economic data on durable goods orders, consumer confidence, personal income and spending, pending home sales and revised first-quarter GDP are due to be released later this week.
Commodities also stabilized after a turbulent week, gold was flat ahead of key U.S. economic data due this week and a speech from Federal Reserve Chair Janet Yellen.
The IFO Institute’s German business climate reading will be released later today, with economists expecting slight fall in business morale this month, compared with the previous month’s reading.
The euro showed little reaction to news that Italy’s government is bailing out two banks in the Venice region at a total cost of 5.2bn euros.
The British Chambers of Commerce has forecast U.K. growth will remain anaemic over the next few years, but did upgraded the growth outlook for 2017 by 0.01 % to 1.5 to 1.4 %, crediting a strong global growth outlook. Sterling’s recent weakness is likely to boost short-term export activity this year, the lobby said.
U.S. stocks closed broadly higher on Friday as oil prices recouped losses suffered when hitting multi-month lows earlier in the week and positive housing market data spurred optimism about the economy.
The tech-heavy Nasdaq rose 0.5 % and the S&P 500 added 0.2 % while the Dow edged down marginally.
European markets ended Friday’s session with modest losses as investors monitored oil price movements and kept a close eye on developments at the EU Summit in Brussels.
The pan-European Stoxx 600 index eased 0.2 %. The German DAX dropped half a %, France’s CAC 40 index slid 0.3 % and the U.K.’s FTSE 100 slipped 0.2 %.