European Shares Poised For Mixed Open

(RTTNews) - European stocks may open on a mixed note Monday, with potential upside likely to remain capped ahead of key U.S. inflation data and Fed Chair Jerome Powell's speech due this week.

U.S. producer price inflation data for April is due on Tuesday, while the more closely watched consumer price inflation figures will be published on Wednesday.

Fed Chair Jerome Powell is scheduled to speak on Monday and Wednesday following recent hawkish comments from several Fed officials.

Chicago Fed President Austan Goolsbee and Minneapolis Fed President Neel Kashkari said on Friday that interest rates are likely to remain at elevated levels until there is clear sign that the rate of inflation is slowing.

Fed Bank of Dallas President Lorie Logan said it's still too early to think about lowering borrowing costs.

Governor Michelle Bowman said she doesn't expect it will be appropriate for the Fed to cut rates in 2024.

Preliminary private sector PMIs from the euro zone, final reports on European inflation, ECB President Lagarde's speeches on Monday and Tuesday along with BoE Governor Bailey's speech scheduled ahead of the Autumn budget on Wednesday may also draw plenty of interest in the week ahead.

Asian markets were seeing modest losses amid reports that the Biden administration is set to announce new China tariffs targeting strategic sectors in the coming days.

Chinese inflation data proved to be a mixed bag, with consumer price inflation rising for a third straight month in April, while producer price inflation continued to decline.

In another development, China's finance ministry said today that it will start the long-awaited sales of long-term treasury bonds to help stimulate key sectors.

The dollar rose against its major rivals, denting demand for bullion.

Oil extended declines on signs of weak fuel demand and ahead of an OPEC meeting on supply policy, with Iraq giving out mixed messages on its stance.

U.S. stocks ended mixed on Friday as investors awaited comments from Federal officials for more clarity on the monetary policy path following recent data pointing to a cooling U.S. labor market.

In economic releases, a measure of U.S. consumer sentiment dropped to a six-month low in May due to growing anxiety about inflation, unemployment and interest rates, a survey showed.

The survey's reading of one-year inflation expectations rose to 3.5 percent from 3.2 percent in April.

The Dow edged up 0.3 percent to extend gains for the eighth consecutive session, marking its longest daily winning run since December. The S&P 500 added 0.2 percent while the tech-heavy Nasdaq Composite finished marginally lower.

European stocks closed higher for a sixth day running on Friday after official data showed Britain exited a technical recession with stronger-than-expected growth in the first quarter of 2024 ahead of an election expected later this year.

The pan European STOXX 600 climbed 0.8 percent. The German DAX rose half a percent, France's CAC 40 gained 0.4 percent and the U.K.'s FTSE 100 inched up 0.6 percent.