European Shares Set To Follow Asian Peers Higher

European stocks may open higher on Monday after a weak U.S. jobs report reaffirmed the need of another round of stimulus.

“The U.S. does have fiscal space to take additional relief and support measures,” IMF chief Kristalina Georgieva said on Friday as Democrats moved forward with a $1.9 trillion relief plan by approving a budget outline for the proposal.

President Joe Biden says he could deliver the aid package in the coming weeks without Republican support.

U.S. Treasury Secretary Janet Yellen predicted the relief plan could generate enough growth to restore full employment by next year.

Asian markets hovered near record highs on optimism over global economic recovery, while oil edged closer to $60 a barrel. Gold prices inched lower on dollar strength and rising Treasury yields.

Industrial production data from Germany and investor confidence survey results from euro area are due later in the session, headlining a light day for the European economic news.

The U.S. economic calendar for this week is relatively quiet, with traders likely to keep an eye on reports on weekly jobless claims, consumer prices and consumer sentiment along with a speech by Federal Reserve Chair Jerome Powell.

U.S. stocks rose on Friday as upbeat earnings news offset data showing a disappointing jobs gain in January.

The Dow Jones Industrial Average rose 0.3 percent, while the tech-heavy Nasdaq Composite gained 0.6 percent and the S&P 500 added 0.4 percent to reach record closing highs.

European stocks ended mixed on Friday after spending much of day’s session in positive territory on optimism over reports showing a drop in new coronavirus cases.

The pan European Stoxx 600 ended on a flat note. The German DAX finished marginally lower and the U.K.’s FTSE 100 slipped 0.2 percent while France’s CAC 40 index advanced 0.9 percent.