European Shares Poised For Mixed Open

(RTTNews) - European stocks may open on a mixed note Monday after posting significant gains last week on the back of encouraging U.S. data releases.

Asian markets traded mixed while U.S. stock futures inched higher, driven by optimism that the U.S. economy would dodge a recession and cooling inflation would kick off a cycle of interest rate cuts.

Investors now look ahead to the release of minutes from the Fed's most recent meeting on Wednesday and Federal Reserve Chair Jerome Powell's Jackson Hole, Wyoming, speech on Friday, for more clarity on the possibility of easing in September.

In an interview with the Financial Times published on Sunday, San Francisco Federal Reserve Bank President Mary Daly noted that it is time to consider adjusting borrowing costs.

Separately, Chicago Fed President Austan Goolsbee stated in a CBS interview that maintaining high rates for too long might create a problem on the employment side of the Fed's mandate.

Sweden's central bank is expected to cut rates by 50 basis points this week. Policy announcements from the Bank of Korea, Bank Indonesia and People's Bank of China are also due this week.

The dollar was undermined by dovish Fed expectations in Asian trading. Gold traded weak around $2,500 per ounce while oil extended losses from the previous session on China demand concerns.

U.S. stocks fluctuated before finishing modestly higher on Friday, booking their best weekly advance since November as recession worries eased and hopes grew for a Federal Reserve rate cut in September.

Separate data revealed U.S. residential construction slowed in July 2024 with permits and starts declining.

The three major averages all rose around 0.2 percent as a survey showed consumer sentiment rose in August and inflation expectations remained unchanged over the next year and beyond.

European stocks rose for a fourth straight session on Friday and posted solid gains for the week on optimism over potential U.S. rate cuts.

The pan European STOXX 600 gained 0.3 percent to hit a two-week high.

The German DAX climbed 0.8 percent and France's CAC 40 added 0.4 percent while the U.K.'s FTSE 100 dipped 0.4 percent as strong retail sales and GDP data pushed the pound to its peak since late July.