European markets head for higher open in a week set to be dominated by U.S. inflation data

Key Points

• European stocks are expected to open higher on Monday as international markets gear up for key U.S. data releases, including the latest inflation reading.
• The positive start for European stocks comes after markets closed lower last Friday after data showed the U.S. economy added 390,000 jobs in May.
• U.S. and European stocks slid as investors assessed the potential for rising interest rates as a result of the better-than-expected data.

LONDON — European stocks are expected to open higher on Monday as international markets gear up for key U.S. data releases, including the latest inflation reading.

The U.K.’s FTSE index is seen opening 46 points higher at 7,594, Germany’s DAX 76 points higher at 14,530, France’s CAC 40 up 37 points at 6,509 and Italy’s FTSE MIB 98 points higher at 24,256, according to data from IG.

The positive start for European stocks comes after markets closed lower last Friday after data showed the U.S. economy added 390,000 jobs in May. U.S. and European stocks slid as investors assessed the potential for rising interest rates as a result of the better-than-expected data.

The latest U.S. inflation reading at the end of the week will be a key focus for markets. May’s consumer price index in the U.S. is expected to be just slightly cooler than April, and some economists are expecting it could confirm that inflation has peaked.

The University of Michigan consumer sentiment index, also due Friday, will also be closely watched by investors.

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U.S. stock futures were little changed in overnight trading Sunday after a losing week as investors continued to bet that the Federal Reserve will tighten monetary policy aggressively to combat surging inflation. Meanwhile, shares in Asia-Pacific were mixed Monday as a private survey showed another contraction in China’s service sector activity for May.

There are no major earnings or data releases in Europe on Monday.

Source : CNBC