European Shares To Open Mixed After Friday’s Rally

European stocks are seen opening on a mixed note Monday after ending sharply higher in the previous session.

Asian markets extended a global rally, as Fed pause hopes and easing U.S. debt concerns outweighed concerns about slowing Chinese growth and elevated interest rates.

The United States avoided a catastrophic default after President Joe Biden signed legislation that lifts the nation’s debt ceiling.

The dollar climbed to a two-month high, keeping gold prices under pressure.

Oil prices jumped nearly 2 percent to extend Friday’s rally after Saudi Arabia announced it would make an extra 1 million barrel-a-day oil supply cut in July, taking its production to the lowest level for several years.

The U.S. economic calendar remains light this week, with reports on service sector activity, trade deficit and initial jobless claims awaited.

Data showed earlier in the day that a private gauge of China’s service activities edged up in May and remained in expansionary territory for the fifth consecutive month.

Elsewhere, new data out of Japan revealed that service sector activity in the country expanded at a record pace in the month.

U.S. stocks posted strong gains on Friday as the latest jobs report delivered mixed signals and the passage of the debt-ceiling agreement helped avert concerns surrounding debt default.

The Dow rallied 2.1 percent, while the tech-heavy Nasdaq Composite surged 1.1 percent to reach over one-year high and the S&P 500 added 1.5 percent to set a new nine-month closing high.

Data showed non-farm employment soared by 339,000 jobs in May while economists had expected an increase of 190,000 jobs.

However, a rise in unemployment rate to a seven-month high of 3.7 percent and lower average hourly earnings helped keep alive hopes of Fed pausing rate hikes.

European stocks rose sharply on Friday amid easing U.S. debt worries.

The pan European STOXX 600 jumped 1.5 percent. The German DAX climbed 1.3 percent, France’s CAC 40 jumped 1.9 percent and the U.K.’s FTSE 100 gained 1.6 percent.

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