European stocks are seen opening slightly lower on Monday despite key Chinese data coming in above forecasts.
Asian stocks rose broadly, though Chinese and Hong Kong markets were subdued ahead of a virtual summit between U.S. President Joe Biden and his Chinese counterpart Xi Jinping later in the day, with Taiwan likely to top the agenda.
The downside remained limited as key Chinese data surprised to the upside.
Annual growth in retail sales and industrial output both handily beat forecasts, while new home prices in the country fell 0.2 percent sequentially in the month.
Analysts said the People’s Bank of China could cut bank reserve requirements this week to support economic activity.
Elsewhere, data showed that Japan’s economy shrank far more than expected in the three months to September, driven in part by a drop in household consumption due to the imposition of a virus state of emergency over the summer.
Eurozone trade figures and manufacturing sector data from the U.S may sway sentiment later in the day.
The dollar hovered near a 16-month high as investors await speeches by a number of Federal Reserve officials this week for more clues on interest rates and monetary policy going forward.
Minneapolis Federal Reserve Bank President Neel Kashkari said on Sunday that the Fed shouldn’t overreact to elevated inflation as it is likely to be temporary.
U.S. Treasury Secretary Janet Yellen said controlling COVID-19 in the U.S. will be crucial to easing inflationary pressures.
Gold pulled back from a five-month high, while oil prices dropped amid expectations of higher supplies and weakening demand.
U.S. stocks advanced on Friday despite worries about accelerating inflation and downbeat data showing an unexpected deterioration in U.S. consumer sentiment in November.
The Dow rose half a percent to end higher for the first time in four sessions, while the S&P 500 added 0.7 percent and the tech-heavy Nasdaq Composite climbed 1 percent.
European stocks ended mixed on Friday as investors weighed corporate earnings against historic inflation surges in the U.S. and China.
The pan European Stoxx 600 gained 0.3 percent. The German DAX finished marginally higher and France’s CAC 40 index rose half a percent while the U.K.’s FTSE 100 dropped half a percent.
Source: Read Full Article