European Shares Seen Slightly Higher As Investors Await US CPI Data

European stocks may open on a positive note Monday following a tech-driven rally on Wall Street Friday.

The upside, however, may remain limited and volatility cannot be ruled out as inflation concerns returned to the fore.

Investors look forward to the release of U.S. reports on consumer and producer prices this week after data showed expectations for inflation among U.S. households are on the rise.

A summit between Joe Biden and Xi Jinping later this week also remains on investors’ radar, with Beijing reportedly considering resuming purchases of Boeing’s 737 Max aircraft.

On the earnings front, retail giants Walmart, Home Depot and Target along with networking giant Cisco are among the prominent companies that will unveil their financial results this week.

Asian markets were seeing modest losses in Asian trade and gold was marginally lower while Treasuries and the dollar were largely steady in cautious trade.

Oil prices fell about 1 percent to extend three weeks of declines on worries of declining demand in the U.S. and China and a waning war-risk premium.

U.S. stocks rallied on Friday to notch a second week of gains as Treasury yields stabilized after hitting 16-year highs the previous day.

Investors shrugged off reports showing deteriorating consumer sentiment and rising inflation expectations of households.

The tech-heavy Nasdaq Composite surged 2.1 percent to log its best single-day gain since May while the Dow and the S&P 500 climbed 1.2 percent and 1.6 percent, respectively to reach their best closing levels in well over a month.

European stocks closed notably lower on Friday after hawkish comments from Fed, ECB and BoE policymakers and some disappointing regional economic data.

The pan European STOXX 600 gave up 1 percent. The German DAX dropped 0.8 percent, France’s CAC 40 lost 1 percent and the U.K.’s FTSE 100 shed 1.3 percent.

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