European Shares Seen Tad Higher At Open

(RTTNews) - European stocks are seen opening a tad higher on Monday after China's central bank cut a key policy interest rate for the first time since January, underscoring the need for additional stimulus to shore up sagging economic growth.

Asian stocks mostly rose despite data showing China's economy was struggling with COVID-19 restrictions.

China's industrial production and retail sales growth for July came in well below estimates, youth unemployment hit a record high in July, investment into real estate fell at a faster pace in July than June and investment into manufacturing slowed its pace of growth, suggesting that the post-lockdown recovery is losing steam.

Japan's Nikkei index was up over 1 percent after official data showed the country's economy expanded in the three months to June following the lifting of pandemic curbs on businesses.

Gold slipped and the dollar edged higher as investors awaited the release of latest FOMC minutes on Wednesday for clues on the size of next rate hike.

Reports on retail sales and industrial production along with a slew of housing data due this week may also offer additional clues about the outlook for interest rates in the world's largest economy.

On the earnings front, retail giants Walmart, Home Depot, Lowe's and Target are among the companies due to report their quarterly results this week.

Oil prices fell over 1 percent in Asian trade to extend Friday's losses amid signs of progress in talks on reviving a 2015 nuclear deal.

U.S. stocks rallied on Friday to deliver a fourth straight week of gains amid expectations that moderating inflation will help the Fed pull off a soft landing for the economy.

A measure of U.S. consumer sentiment improved much more than expected in August and one-year inflation expectations fell to the lowest level since February, adding to optimism about the economy.

The Dow gained 1.3 percent, the tech-heavy Nasdaq Composite surged 2.1 percent and the S&P 500 added 1.7 percent to reach new three-month closing highs.

European stocks ended firmly in positive territory on Friday as investors reacted to better-than-expected readings on U.K. second-quarter GDP and Eurozone industrial production.

The pan European Stoxx 600 edged up 0.2 percent. The German DAX climbed 0.7 percent, France's CAC 40 index inched up 0.1 percent and the U.K.'s FTSE 100 rose half a percent.