European Shares Seen Up On US Stimulus Hopes

European stocks are seen opening higher on Monday as investors remain hopeful of potential passage of a U.S. stimulus bill.

Another support package is really incredibly important to ensure workers can stay safely at home while the novel coronavirus continues to spread, Chicago Fed President Charles Evans said in an interview with CBS News released on Sunday.

Asian markets are moving higher after data showed China’s factory deflation eased in July amid signs of a recovery in industrial activity.

On the coronavirus front, the number of coronavirus infection cases neared 2-crore mark globally and the death toll stood well above 7 lakh.

The dollar fell against the yen amid deteriorating Sino-U.S. relations, while oil clawed back over half of Friday’s losses after Iraq said it would step up production cuts.

Eurozone Sentix investor sentiment data is due later in the session. Economists forecast the index to rise to -15.1 in August from -18.2 in July.

U.S. stocks ended mixed on Friday as investors weighed escalating U.S.-China tensions against upbeat jobs data, with the economy adding 1.8 million jobs in July versus the 1.6 million increase expected by analysts. The unemployment rate dropped to 10.2 percent in July from 11.1 percent in June.

Investors also reacted to an ongoing political impasse over further economy relief and the new U.S. sanctions on Hong Kong officials over national security law.

The S&P 500 inched up marginally and the Dow Jones Industrial Average edged up 0.2 percent to extend gains for a sixth straight session, while the tech-heavy Nasdaq Composite index fell 0.9 percent to snap a seven-day winning streak.

European stocks eked out modest gains on Friday as stronger-than-expected jobs report from the U.S. and some fairly encouraging corporate earnings reports helped investors shrug off rising tensions between Washington and Beijing.

The pan European Stoxx 600 rose 0.3 percent. The German DAX gained 0.7 percent, while France’s CAC 40 index and the U.K.’s FTSE 100 both edged up 0.1 percent.

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