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European Shares Set To Follow Asian Peers Higher

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European stocks look set to open a tad higher on Monday amid investor optimism over economic outlook and earnings growth.

Asian shares are broadly higher, although trading remained light across the region amid holidays in China, Hong Kong, India and South Korea.

Official data released over the weekend showed activity in China's vast manufacturing sector grew at the fastest pace since 2012 in September, helping ease growth worries ahead of an upcoming political meeting next month.

Elsewhere, a measure of Japanese business confidence jumped to its highest level in a decade.

Closer home, growth in the U.K. private sector slowed in the three months to September, according to growth indicator released by the Confederation of British Industry. The balance of firms reporting an increase in output fell to +11 percent from +14 percent in three months to August.

Unemployment and flash Purchasing Managers' survey results from the euro area are slated to be released later in the day.

The dollar rose against the yen and oil prices paused for breath after climbing as much as 20 percent in the third quarter, while gold hit its lowest level in nearly seven weeks.

U.S. stocks eked out modest gains on Friday, while Treasuries and the dollar dropped after reports that President Donald Trump and Treasury Secretary Steven Mnuchin met with former Federal Reserve governor Kevin Warsh to discuss the role of Fed chair.

On the economic front, personal income and spending figures for August both rose in line with estimates and a gauge of consumer sentiment declined more than expected in September while the pace of growth in Chicago-area business activity accelerated in the month.

The Dow inched up 0.1 percent while the S&P 500 gained 0.4 percent and the Nasdaq Composite added 0.7 percent to reach fresh record closing highs.

European markets ended Friday's session sharply higher as a string of upbeat data and expectations of higher interest rates helped spur a rally in the banking sector.

The pan-European Stoxx Europe 600 index rose half a percent for the day and ended the month up by 3.8 percent, its highest monthly advance since December 2016. The German DAX climbed 1 percent while France's CAC 40 index and the U.K.'s FTSE 100 both rose 0.7 percent.

by RTT Staff Writer

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