European Shares Seen Up As Weak US Data Revives Fed Easing Bets

(RTTNews) - European stocks are seen opening on a firm note Monday as weak U.S. data released on Friday fueled bets that the Federal Reserve could start cutting interest rates soon. The U.S. economic calendar for this week is relatively quiet, potentially shifting the spotlight to earnings news from several big-name companies.

Closer home, U.K.'s first quarter GDP numbers and Bank of England's policy meeting are likely to garner investor attention this week.

Asian stocks traded mostly higher, with markets in South Korea and Japan closed for holidays.

China's Shanghai Composite index rallied around 1 percent as trading resumed after an extended break for the Labour Day holiday.

The rebound came after the Politburo of the Communist Party announced the country would step up support for the economy with prudent monetary and proactive fiscal policies.

Meanwhile, the services sector in China continued to expand in April, although at a slower pace, the latest survey from Caixin revealed earlier today with a services PMI score of 52.5, down from 52.7 in March.

The yen weakened after a strong surge last week due to suspected currency intervention by Japanese authorities.

Oil and gold prices were seeing modest gains in Asian trade as hopes for a Gaza ceasefire appeared slim.

Israel intensified attacks on Rafah, killing at least 22 Palestinians after Hamas fired rockets at the Karem Abu Salem crossing, killing three Israeli soldiers.

U.S. stocks soared on Friday as Apple reported strong earnings results and a weaker-than-expected April jobs report along with an unexpected contraction in service sector activity in April boosted the case for rate cuts by the third quarter.

Data showed that non-farm payroll employment climbed by 175,000 jobs in April after surging by an upwardly revised 315,000 jobs in March. The jobless rate crept up to 3.9 percent from 3.8 percent in March.

The Dow climbed 1.2 percent, the tech-heavy Nasdaq Composite surged 2 percent and the S&P 500 rallied 1.3 percent.

European stocks closed higher on Friday, with a slew of strong earnings and rate-cut expectations helping underpin investor sentiment.

The pan European STOXX 600 gained half a percent. The German DAX rose 0.6 percent, while France's CAC 40 and the U.K.'s FTSE 100 both added about half a percent.