European Shares Set To Follow Asian Peers Higher

asian markets1 09jul18

European stocks may open higher on Monday as another strong U.S. jobs report helped reinforce investor confidence in the world's largest economy.

U.S. job growth increased more than expected in June but slowing wage increases helped reduce the probability of another Fed rate hike for September.

The strong labor market data coupled with upward revisions for April and May helped investors shrug off lingering concerns over an escalating trade war between the world's top two economies.

Most Asian markets rose as traders looked forward to the release of Chinese trade data later this week.

The dollar struggled near 3-1/2-week lows against its rivals while the pound held steady following news of the resignation of Brexit secretary David Davis. Oil prices edged higher amid signs of tightening market conditions.

The day's economic calendar remains light, with foreign trade figures from Germany and investor confidence data from euro area slated for release later in the session.

U.S. stocks closed higher in light trading on Friday. The Dow rose 0.4 percent, the S&P 500 gained 0.9 percent and the tech-heavy Nasdaq Composite rallied 1.3 percent.

European markets closed mostly higher on Friday despite the U.S. imposing tariffs on 34 billion dollars worth of Chinese imports and China quickly responding in kind.

The pan-European Stoxx Europe 600 index advanced 0.2 percent. The German DAX rose 0.3 percent, while France's CAC 40 index and the U.K.'s FTSE 100 inched up around 0.2 percent each.

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