European Shares Poised For Mixed Open

European stocks are likely to open on a mixed note Monday ahead of a shortened trading week, given the upcoming Good Friday holiday.

Inflation and interest-rate worries may remain on investors’ radar ahead of a slew of U.S. economic readings due this week, including reports on new home sales, durable goods orders, consumer confidence and pending home sales.

Investors will gain further insight about the path of inflation from the February personal consumption expenditures price index that includes readings on inflation said to be preferred by the Federal Reserve.

Many markets in Europe and the U.S. will remain closed for Easter on Friday, when the PCE data is due for release.

Closer home, consumer price data France, Italy, Belgium and Spain are awaited ahead of the overall EU CPI report on April 3.

Sweden’s central bank meets on Wednesday, with investors looking for clues on interest-rate cut following a surprise easing by the Swiss National Bank last week.

Asian markets traded mixed, with Japan’s Nikkei retreating from record highs after a top currency official warned the recent movements of dollar-yen rates are “not in line with fundamentals.”

The tech rift between the U.S. and China intensified after Beijing reportedly blocked using Intel and AMD chips alongside Microsoft’s Windows operating system for government use.

Meanwhile, the yuan edged higher after China’s central bank set a stronger-than-expected daily reference rate for the currency.

The dollar held steady while gold rebounded, after having fallen from record highs last week following Atlanta Fed President Bostic’s comment that he anticipated just one rate cut this year.

Oil ticked higher after a three-day drop, buoyed by Ukraine’s attacks on Russian refineries and data showing a fall in U.S. rig counts.

U.S. stocks ended mixed on Friday but scored strong weekly gains as Treasury yields hit one-week lows on dovish Fed commentary.

The tech-heavy Nasdaq Composite edged up 0.2 percent to notch a record closing high while the S&P 500 slipped 0.1 percent and the Dow dropped 0.8 percent.

European stocks also ended mixed on Friday after a week full of central bank meetings in Asia, Europe and the United States.

The pan European STOXX 600 ended flat with a negative bias. The German DAX inched up 0.2 percent and the U.K.’s FTSE 100 added 0.6 percent while France’s CAC 40 shed 0.3 percent.

Market Analysis