Europe: a quiet day ahead with UK and US on holiday
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EUROPE: A QUIET DAY AHEAD WITH UK AND US ON HOLIDAY
European shares were set for a flat start of the week on Monday, with investors bracing for key U.S. inflation data on Friday that could help fine-tune expectations over the timing and scale of possible rate cuts by the Federal Reserve this year.
Trading however was likely be thin due to the closure of UK and U.S. markets for holiday, while in Asia the tone was positive, with MSCI's broadest index of Asia-Pacific shares outside Japan < .MIAPJ0000PUS> gaining around 0.9%.
Traders this week will also be watching for euro zone inflation readings coming just ahead of the European Central Bank's policy meeting on June 6, which is widely expected to deliver a first rate cut from record levels. Taiwan stocks .TWII reached a record, having climbed more than 7% for the month so far on a tide of tech bullishness.
EuroSTOXX50 STXEcv1 and DAX FDXc1 futures were last trading just below parity. The region-wide STOXX 600 .STOXX is hovering near record-high levels, up 3.4% so far in May as strong earnings season helped make up for a decline in April.
In European corporate news, Alstom ALSO.PA was one to watch after the French train maker set terms of a planned 1-billion euro ($1.08 billion) capital increase it will use to strengthen its balance sheet.
In the real estate sector, Sweden's SBB SBBb.ST said on Saturday it was forming a joint venture with U.S.-based private credit firm Castlelake to help its debt problems.
Moody's lifted its rating for German landlord TAG Immobilien TEGG.DE to investment grade with a stable outlook.
In European data, Germany's Ifo business climate for May will be Monday's highlight, possibly showing a fourth consecutive rise.
(Danilo Masoni)
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