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European Shares Seen Opening Higher

asianmarket 021219 20jan20 lt

European stocks may open higher on Monday after U.S. markets extended their run of record peaks on Friday following the release of solid U.S. economic data and lashes of liquidity from the Federal Reserve.

As trade tensions ease, investors eye U.S. corporate earnings as well as central bank meetings in Europe, Canada and Japan this week for further direction.

IBM Corp., Netflix Inc, Intel Corp, American Express, Johnson & Johnson, Procter & Gamble and Texas Instruments Inc are among the prominent U.S. companies that will unveil their quarterly earnings this week.

Energy stocks are likely to be in focus today, as oil prices jumped more than 1 percent after two large crude production bases in Libya began shutting down amid a military blockade, potentially reducing national output to a fraction of its normal level.

Asian markets edged higher after the People's Bank of China kept the loan prime rate unchanged. Gold traded in a tight range while the dollar began the week on a firm note.

In economic releases, U.K. house prices increased the most for the month of January after the general election, data published by property website Rightmove showed.

House prices increased 2.3 percent in January, the highest since the record started in 2002. There now seems to be a release of this pent-up demand, which suggests we are in store for an active spring market, Miles Shipside, a director at Rightmove, said.

U.S. stocks eked out modest gains on Friday as investors cheered strong U.S. housing data and signs of resilience in the Chinese economy.

The Dow Jones Industrial Average edged up 0.2 percent, the tech-heavy Nasdaq Composite gained 0.3 percent and the S&P 500 added 0.4 percent.

European markets closed higher on Friday after data showed China's economy grew in line with expectations in 2019.

The pan European Stoxx 600 notched a fresh record high before ending 1 percent higher. The German DAX climbed 0.7 percent, France's CAC 40 index surged 1 percent and the U.K.'s FTSE 100 advanced 0.9 percent.

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