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European Shares To Open On Cautious Note

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European stocks are likely to open on a subdued note Monday as investors scale back expectations of an aggressive interest rate cut by the U.S. Federal Reserve.

Geopolitical tensions also remain on investors' radar after a British-flagged tanker was seized by Iran in the Gulf.

Asian markets remain mostly lower as Nasdaq-style technology board on the Shanghai Stock Exchange marked its debut and Japan's ruling coalition retained its majority in elections for the upper house of Parliament.

The dollar drifted higher and oil prices rose as mounting tensions between Tehran and the West risk further disruption of commercial shipping in the strategically vital waterway.

Brent crude futures are up 1.2 percent after a gain of about 0.9 percent in the previous session.

In economic news, the next U.K. Prime Minister should restore confidence and take action to bring the economy back on track, the Confederation of British Industry said in its Business Manifesto published today.

Carolyn Fairbairn, the CBI's Director General called for a clear direction for the U.K. and to build a long-term vision that drives in investment and back business as a foundation of a growing, inclusive economy.

Across the Atlantic, traders await reports on new and existing home sales, durable goods orders and second quarter GDP this week for clues on the health of the world's largest economy.

In earnings news, Coca-Cola, Travelers, Visa, AT&T, Boeing, Caterpillar, UPS, Facebook, Ford, 3M, Alphabet, Intel, McDonald's, and Twitter are among the prominent U.S. companies that will unveil their quarterly earnings results this week.

U.S. stocks fell on Friday as investors digested a slew of corporate earnings reports and remarks from a top Fed official dampening hopes of a near-term interest rate cut.

The Dow Jones Industrial Average dropped 0.3 percent, the tech-heavy Nasdaq Composite shed 0.7 percent and the S&P 500 gave up 0.6 percent.

European markets ended Friday's session slightly higher as traders awaited clarity on whether the Fed will cut interest rates later this month.

The pan European Stoxx 600 edged up 0.1 percent. The German DAX rose 0.3 percent, France's CAC 40 index finished marginally higher and the U.K.'s FTSE 100 gained 0.2 percent.

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