European stocks may open flat to slightly higher on Monday as investors react to hawkish comments from Fed officials and look for progress in U.S. debt ceiling talks.<\/p>\n
U.S. President Joe Biden said Sunday he remains “optimistic” about finding an agreement with his Republican opponents to raise the U.S. debt limit and avoid a default. Talks between Biden and lawmakers are likely to resume on Tuesday, after getting postponed on Friday. <\/p>\n
Meanwhile, Chicago Fed President Austan Goolsbee said in PBS interview that the U.S. central bank is trying to slow inflation without sending the economy<\/span> into a recession.<\/p>\n Goolsbee’s comments followed those of Fed Governor Michelle Bowman who warned there is no ‘consistent evidence’ that inflation is under control. <\/p>\n Asian stocks traded mixed as investors eye a string of Chinese data this week for directional cues. <\/p>\n Earlier today, China’s central bank rolled over maturing medium-term policy loans while keeping interest rates unchanged.<\/p>\n The dollar held onto recent gains ahead of a slew of U.S. reports due this week on retail sales, industrial production, housing starts and existing home sales.<\/p>\n Traders also await speeches from several Fed officials, including Fed Chair Jerome Powell’s speech on Friday, heading to the Fed’s June meeting. <\/p>\n Earnings news may also attract attention, with retail giants Walmart, Home Depot and Target among the prominent companies due to report their quarterly results this week.<\/p>\n Gold edged up slightly in Asian trading while oil prices fell nearly 1 percent on fears of economic slowdown in different parts of the world. <\/p>\n U.S. stocks fell on Friday as debt ceiling worries deepened, a measure of consumer sentiment hit a six-month low and long-term inflation expectations unexpectedly accelerated in early May to a 12-year high, adding to recession worries.<\/p>\n The tech-heavy Nasdaq Composite shed 0.4 percent and the S&P 500 eased 0.2 percent to notch its second straight losing week while the Dow finished marginally lower to extend losses for the fifth consecutive session.<\/p>\n European stocks ended Friday’s session higher amid optimism the Federal Reserve would halt interest-rate increases in the next policy review in June.<\/p>\n The pan European STOXX 600 gained 0.4 percent. The German DAX and France’s CAC 40 both rose about half a percent while the U.K.’s FTSE 100 edged up 0.3 percent. <\/p>\n