European Shares Seen Higher At Open

(RTTNews) - European stocks are seen opening on a firm note Monday, with investors likely to focus on geopolitical tensions, upcoming Chinese PMI and U.S. employment data, along with bipartisan negotiations to avoid a looming government shutdown in the United States.

Russia attacked the Ukrainian capital and other cities across the country on Sunday with nearly 600 drones and dozens of missiles, killing at least four people in Kyiv and injuring dozens more in an assault that lasted more than 12 hours.

Elsewhere, power outages were reported across Belgorod Oblast after Ukrainian HIMARS rockets reportedly struck a thermal power plant near the Russian city on Sept. 28.

Meanwhile, U.S. Democrats and Republicans will meet today at the White House in hopes of hammering out a compromise extension to avert a government shutdown that could come at 12:01 a.m. Wednesday.

The lack of a deal to agree to a short-term bill to keep U.S. government open could delay the release of the important September jobs report due Friday and may also affect the release of CPI readings scheduled for Oct. 3 and Oct. 15.

Other key U.S. economic reports due this week include reports on manufacturing and service sector activity, consumer confidence and job openings.

Asian stocks were mostly higher after data showed China's industrial profits returned to growth in August. Japanese markets edged lower as numerous stocks traded ex-dividend.

The dollar's weakness helped lift gold prices to a new record high above $3,800 per ounce.

Oil prices retreated as crude resumed flowing from Iraq's Kurdistan to Turkey for the first time in 21/2 years and Reuters reported OPEC+ will likely approve another production increase of at least 137,000 barrels a day in November at its meeting next weekend.

U.S. stocks rebounded on Friday after falling for three straight sessions. The Treasury yield curve marginally steepened as August's personal consumption expenditures price index, the Federal Reserve's preferred inflation measure, showed that core inflation rose at a 2.9 percent seasonally adjusted annual rate in August, unchanged from July and matching estimates.

The Dow climbed 0.7 percent, the S&P 500 gained 0.6 percent and the tech-heavy Nasdaq Composite added 0.4 percent.

European stocks recovered from three-week lows on Friday despite U.S. President Donald Trump announcing new import tariffs on pharmaceutical drugs, kitchen cabinets and bathroom vanities, upholstered furniture and heavy trucks.

The pan European Stoxx 600 gained 0.8 percent. The German DAX rose 0.9 percent, France's CAC 40 rallied 1 percent and the U.K.'s FTSE 100 advanced 0.8 percent.