European Shares Seen Steady With China Data In Focus

(RTTNews) - European stocks may open on a firm note Monday amid a growing sense of optimism about the U.S. economy.

Asian stocks rallied as optimism that central banks could be nearing the end of their interest rate hiking cycle outweighed disappointment over underwhelming manufacturing data from the region.

A private survey showed China's factory activity grew more slowly in June, reinforcing the view that the world's second-largest economy is still struggling to rebound.

Elsewhere, factory activity remained stuck in contraction in neighboring economies South Korea, Japan and Taiwan, according to manufacturing purchasing managers' indexes published by S&P Global and au Jibun Bank.

A weaker dollar benefited oil and gold prices while Treasury yields were little changed.

U.S. stock markets will have a shortened trading session today ahead of Independence Day holiday on Tuesday.

The release of the FOMC minutes on Wednesday and the closely watched monthly jobs report on Friday will be in focus as the week progresses.

U.S. stocks posted solid gains on Friday as new data showing lower consumer spending and cooling inflation fueled hopes the Fed could be nearing its rate-hiking cycle. The Dow gained 0.8 percent and the S&P 500 climbed 1.2 percent to reach the highest since April 2022, while the tech-heavy Nasdaq Composite jumped 1.5 percent to boast its biggest first-half gain in 40 years.

European stocks closed higher on Friday as a measure of Eurozone inflation extended its decline in June and weak China factory activity data raised expectations of additional stimulus.

The pan European STOXX 600 advanced 1.2 percent. The German DAX surged 1.3 percent, France's CAC 40 rallied 1.2 percent and the U.K.'s FTSE 100 rose 0.8 percent.