European stocks are seen opening higher on Monday after China’s Caixin Services Purchasing Managers’ Index came in at 41.4, an improvement over April’s reading of 36.2.
Metal stocks may rise as London copper prices scaled to their highest in more than one month after reports that the United States is mulling lifting some tariffs on China to fight inflation.
“We are looking at it. In fact, the president has asked us on his team to analyze that. And so, we are in the process of doing that for him and he will have to make that decision,” U.S. Commerce Secretary Gina Raimondo told CNN in an interview on Sunday.
Asian stocks traded mostly higher, with Chinese and Hong Kong markets leading regional gains as Beijing continued to roll back its Covid-19 restrictions.
The dollar climbed against the yen while a slightly pullback in U.S. Treasury yields helped lift gold prices ahead of the European Central Bank meeting and the U.S. inflation report due this week.
Cleveland Federal Reserve Bank President Loretta Mester said Friday the Fed may need to raise rates through September unless there is “compelling” evidence that inflation has peaked.
Oil prices rose in Asian trade after Saudi Arabia raised prices sharply for its crude sales in July.
U.S. stocks fell sharply on Friday to close the week lower as a stronger-than-expected jobs report reversed any hopes that the Fed would consider a pause in rate hikes after the June/July increases.
Data showed that non-farm payroll employment jumped by 390,000 jobs in May after surging by an upwardly revised 436,000 jobs in April. Economists had expected employment to increase by about 325,000 jobs. The unemployment rate remained unchanged at 3.6 percent.
The tech-heavy Nasdaq Composite plunged as much as 2.5 percent, while the S&P 500 shed 1.6 percent and the Dow lost 1.1 percent.
European stocks finished slightly lower on Friday, with the U.K. markets closed for the Queen’s Platinum Jubilee celebrations.
The pan European Stoxx 600 slipped 0.3 percent as euro zone inflation numbers exceeded expectations and marked a seventh consecutive record high. The German DAX Index and the French CAC 40 Index both edged down by 0.2 percent.
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