LONDON — European stocks are expected to start the new trading week on an unsettled note in mixed territory Monday.
The U.K.’s FTSE index is seen opening 25 points higher at 8,389, Germany’s DAX down 2 points at 18,904, France’s CAC 40 down 12 points at 7,622 and Italy’s FTSE MIB 12 points lower at 34,405, according to data from IG.
Regional markets closed higher last Friday, the last trading day of August, as investors considered inflation data from around the world and expectations rise that the U.S. Federal Reserve will begin interest rate cuts in September.
Data released last week showed the Fed’s preferred inflation gauge, the personal consumption expenditures price index, rose 0.2% on a monthly basis in July and 2.5% from a year ago. The result was in line with estimates from economists polled by Dow Jones. Excluding food and energy, it also rose 0.2% from the prior month. The data is likely to influence policymakers’ rate decision in September.
Asia-Pacific markets fell overnight as investors assessed China’s business activity numbers released over the weekend. China’s official purchasing managers’ index data for August saw the manufacturing PMI fall to a six-month low of 49.1, a faster contraction than the 49.4 seen in July.
Data releases in Europe on Monday include the latest manufacturing PMIs from Spain, Italy, France, U.K. and Germany. There are no major earnings releases.
U.S. markets are closed on Monday for the Labor Day public holiday.