European Shares Poised For Positive Opening

European stocks are seen opening higher on Monday after G20 leaders endorsed on Saturday a global minimum tax on the largest companies and also pledged more Covid vaccines to poorer nations.

Asian markets traded mixed as investors react to mixed Chinese factory activity data for October.

The official manufacturing Purchasing Manager’s Index (PMI) dropped to 49.2 from 49.6 in September, shrinking for a second month due to higher raw material prices and softer domestic demand.

However, a private survey showed Chinese manufacturing activity growth in October expanded with the Caixin/Markit manufacturing PMI coming in at 50.6.

Japanese shares led regional gains after Prime Minister Fumio Kishida’s coalition kept a comfortable majority in Sunday’s parliamentary election.

Elsewhere, Australia eased its international border restrictions for the first time during the coronavirus pandemic.

Gold was little changed while the dollar held near a 2 1/2-week high against its major peers as quickening inflation in the United States boosted the case for earlier Federal Reserve interest rate hikes.

The Federal Reserve concludes a two-day policy meeting on Wednesday, with investors likely to watch the commentary related to tapering schedule and indication of interest rate hikes.

Oil dropped in Asian trade after China released reserves of gasoline and diesel to boost supply and support price stability in some regions. Investors were also unwinding long positions ahead of an OPEC+ meeting on Nov. 4.

Retail sales data from Germany and final manufacturing Purchasing Managers’ survey results from the U.K. are due later in the session, headlining a light day for the European economic news.

U.S. stocks eked out modest gains on Friday to reach new record closing highs despite disappointing earnings results from tech giants Apple and Amazon and data showing a gain in employment costs and consumer inflation for September.

The Dow and the tech-heavy Nasdaq Composite rose around 0.3 percent each, while the S&P 500 inched up 0.2 percent.

European stocks ended mixed on Friday after a measure of Eurozone inflation rocketed to its highest level since July 2008.

The pan European Stoxx 600 ended flat with a positive bias. The German DAX ended marginally lower and the U.K.’s FTSE 100 eased 0.2 percent while France’s CAC 40 index rose 0.4 percent.

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