European Shares Seen Opening Higher After Failed Wagner Mutiny

European stocks may open on a positive note Monday as investors keep a close eye on the situation in Russia.

After an aborted mutiny by Wagner mercenary forces led by Yevgeny Prigozhin, analysts said the geopolitical risk and internal instability in Russia has increased.

U.S. Secretary of State Antony Blinken said the events exposed “real cracks” in Putin’s rule.

Asian markets fell broadly as weak PMI data coming out of Europe and the U.S. raised concerns about a deep downturn in major economies.

On Friday, Atlanta Fed chief Raphael Bostic said he supports holding the central bank’s target-rate level for the rest of the year.

However, San Francisco president Mary Daly said two more interest-rate hikes this year is a “very reasonable” projection.

The dollar traded weak, helping gold and oil prices push higher.

In economic news, Germany’s Ifo business confidence survey results are due later in the session. Economists expect the business sentiment index to fall to 90.7 in June from 91.7 in May.

Across the Atlantic, the release of reports on durable goods orders, consumer confidence, new home sales and pending home sales may sway market direction this week.

The Commerce Department is due to release its report on personal income and spending for May, which includes a reading on inflation said to be preferred by the Fed.

U.S. stocks ended lower on Friday amid worries that more interest rate hikes by the Federal Reserve would tip the world’s largest economy into a recession.

The tech-heavy Nasdaq Composite tumbled 1 percent to snap an eight-week winning streak and post its worst weekly performance since March.

The S&P 500 declined 0.8 percent to snap five consecutive weeks of gains while the Dow declined 0.7 percent to end a three-week positive run.

European stocks also ended Friday’s session lower on fears that recession in the U.S. and Europe along with delayed stimulus from China will spell trouble for the global growth outlook.

The pan European STOXX 600 slipped 0.3 percent. The German DAX lost 1 percent, France’s CAC 40 shed 0.6 percent and the U.K.’s FTSE 100 gave up half a percent.

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