European markets open to closing, data, profit

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LONDON – European stocks are set to open cautiously higher on Monday after last Friday’s gains, as Italy’s main index opens in negative territory amid political uncertainty.

the UKs FTSE index is seen opening 12 points higher at 7,129, Germany’s DAX 12 points higher at 12,881, France CAC 40 an increase of 11 points on 6,051 and Italy’s FTSE MIB 51 points lower at 20,799, according to data from IG.

That comes amid more upbeat global sentiment. In Asia-Pacific Markets on Monday, Hong Kong’s Hang Seng jumped more than 2%, while US Stock Index Futures were slightly higher early Monday morning after a positive end of the week last week.

Friday’s rally of relief came as traders bet that the Federal Reserve will be less aggressive in its upcoming meeting. The Wall Street Journal reported Sunday that the central bank is on track to raise interest rates by 75 basis points at its meeting later this month, rather than a larger full percentage point increase that some analysts had forecast.

Fears of a recession have dominated trade sentiment in recent weeks as market participants worry that aggressive action by the Fed – in an effort to contain decades-long inflation – will eventually send the economy into recession.

Last week, new inflation data showed consumer prices rising 9.1% in Junea higher-than-expected reading and the largest rise since 1981. That, in turn, led traders to bet that the Fed could raise interest rates by a full percentage point at its meeting in late July.

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