(RTTNews) – European stocks are likely to open mostly lower on Monday, though U.K. markets may rise led by energy stocks, tracking sharp gains in crude oil prices.
Oil prices jumped nearly 5 percent in Asian trade after Saudi Arabia and other OPEC+ oil producers on Sunday announced further oil output cuts of around 1.16 million barrels per day.
The surprise oil production cut would come into effect from May and last until the end of the year.
The move prompted speculation that the Biden administration may go for another release of oil from the Strategic Petroleum Reserve.
Asian stocks traded mixed as investors react to the spike in oil prices and weak Chinese data. A private survey showed China’s manufacturing activity unexpectedly eased in March.
The dollar strengthened as the oil price rally stoked inflation fears and dashed hopes of Fed rate-hike pause.
In economic releases, the U.S. monthly jobs report as well as reports on manufacturing and service sector activity, the U.S. trade deficit and private sector employment would be in focus as the week progresses.
U.S. stocks rallied on Friday after an inflation gauge the Fed follows closely rose slightly less than anticipated in February, helping spur optimism the Federal Reserve will hold off on raising interest rates at its next meeting in early May.
The Dow climbed 1.3 percent and the S&P 500 gained 1.4 percent while the tech-heavy Nasdaq Composite jumped 1.7 percent to reach a six-month closing high and notch its best quarterly gain since 2020.
European stocks also closed on a firm note on Friday as investors reacted to signs of cooling inflation on both sides of the Atlantic.
The pan European STOXX 600 advanced 0.7 percent. The German DAX rose 0.7 percent, France’s CAC 40 index added 0.8 percent and the U.K.’s FTSE 100 edged up 0.2 percent.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
