European Shares Seen Up As Oil Extends Surge
European stocks are seen opening higher on Monday, with energy companies likely to be in the spotlight.
Asian markets were trading mixed and the dollar weakened as investors weighed the implications of surging energy prices and risks from the Chinese financial system.
West Texas Intermediate extended a rally to top $75 a barrel and Brent hit the highest level since October 2018 amid signs that the crude market is tightening because of a global energy crunch.
The euro held steady after Germany’s centre-left Social Democrats (SPD) narrowly won the country’s federal elections.
Elsewhere in the U.S., House Speaker Nancy Pelosi pledged to pass a $550 billion infrastructure bill this week.
It’s a quiet day ahead on the Eurozone’s economic calendar. ECB President Lagarde is scheduled to speak, with investors awaiting comments on the economic outlook and monetary policy.
Across the Atlantic, this week’s trading may be impacted by reaction to reports on durable goods orders, consumer confidence, personal income and spending and manufacturing activity.
This week will see Fed Chair Jerome Powell and Treasury Secretary Janet Yellen appear before a Senate panel to discuss the U.S. economic recovery.
U.S. stocks fluctuated before ending narrowly mixed on Friday amid concerns relating to the debt woes of China Evergrande Group, a crackdown on bitcoin by China and a looming federal debt-ceiling in the U.S.
The Dow ended flat with a positive bias and the S&P 500 inched up 0.2 percent while the tech-heavy Nasdaq Composite finished marginally lower.
European stocks snapped a three-day winning streak on Friday, with uncertainty about Evergrande’s ability to pay interest on dollar-denominated bonds and a batch of weak economic data from the region denting sentiment.
The pan European Stoxx 600 declined 0.9 percent. The German DAX dropped 0.7 percent, France’s CAC 40 index gave up 1 percent and the U.K.’s FTSE 100 eased 0.4 percent.
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