European Shares Seen Opening Up As US Shutdown Ends

(RTTNews) - European stocks are likely to open higher on Monday after U.S. Senators passed a deal that could end the longest government shutdown in history.

The logjam has ended after a group of Democratic lawmakers reached a deal with Senate GOP leaders and the White House to reopen the government in exchange for a future vote on extending enhanced Affordable Care subsidies.

Asian markets were broadly higher after the release of strong Chinese inflation data. Data showed China's consumer price inflation unexpectedly rose 0.2 percent in October after a 0.3 percent decline in the previous months. Analysts had expected no change.

Producer prices shrank 2.1 percent last month, marking the softest decrease in 14 months.

The yield on U.S. Treasurys was flat after mixed signals from Fed officials on the rate trajectory.

The dollar lost ground, helping gold prices surge more than 1 percent to $4,050 an ounce.

Oil prices were up nearly 1 percent amid rangebound trading. Copper prices rose amid uncertainty over U.S. tariffs.

U.S. stocks rebounded from day's lows to end mixed on Friday as new economic data added to worries of an economic slowdown.

A survey from the University of Michigan revealed that consumer sentiment has neared its lowest level ever in November due to the ongoing federal government shutdown.

Markets came off their lows after top Senate Democrat Chuck Schumer offered to provide Democratic support for passage of a short-term funding bill to reopen the government in exchange for Republican support for a one-year extension of enhanced Obamacare tax credits.

The Dow edged up by 0.2 percent and the S&P 500 added 0.1 percent while the tech-heavy Nasdaq Composite slid 0.2 percent, pressured by more pressure in artificial intelligence stocks.

European stocks closed lower on Friday to extend losses from the previous session amid concerns about high valuations in AI-related stocks and uncertainty about the outlook for U.S. economic growth.

The pan-European Stoxx 600 dipped 0.6 percent. The German DAX fell 0.7 percent, France's CAC 40 eased 0.2 percent and the U.K.'s FTSE 100 shed 0.6 percent.