European Shares Seen Higher In Cautious Trade

(RTTNews) - European stocks are seen opening broadly higher on Monday, though trading volumes are likely to remain thin due to a holiday in the U.S. for Presidents' Day (officially Washington's Birthday).

Stock-specific action may prevail amid ongoing sector rotation and AI disruption fears.

Traders await a slew of U.S. economic data this week for additional cues on interest rates.

This week's U.S. economic calendar includes industrial production data for January, preliminary Q4 GDP numbers, the minutes from the January FOMC meeting, purchasing manager index data for February and PCE price index data for December - the Fed's preferred inflation gauge.

On the earnings front, Walmart, Alibaba and Palo Alto Networks are among the prominent companies due to report their fourth quarter results.

The European economic calendar remains light today, with Eurozone industrial output data and a Eurogroup meeting likely to garner some attention.

Asian markets were mostly lower in thin trade, with China, South Korea and Taiwan closed for Lunar New Year holidays.

The dollar held steady in Asian trade while gold fell more than 1 percent to trade below $5,000 an ounce as investors awaited an upcoming leadership change at the U.S. Federal Reserve.

Oil prices were little changed as traders monitored the latest geopolitical developments and reacted to reports suggesting that OPEC is leaning towards a resumption in oil output increases from April.

Iran and the United States will hold a second round of talks over Tehran's nuclear program this week, with Israeli Prime Minister Benjamin Netanyahu urging U.S. President Donald Trump to demand Iran dismantle its nuclear infrastructure.

U.S. stocks ended narrowly mixed on Friday while Treasury yields fell as softer-than-expected inflation data boosted bets that the Federal Reserve will deliver at least two interest rate cuts this year.

Data showed consumer prices rose by 2.4 percent on a yearly basis in January, down from 2.7 percent in December and slightly below the estimated 2.5 percent increase.

The annual core price inflation also dipped to 2.5 percent from 2.6 percent, bringing relief to investors heading into the long holiday weekend.

European stocks ended mixed on Friday amid fears that AI will disrupt multiple industries.

The pan-European STOXX 600 index ended 0.1 percent lower. The German DAX edged up by 0.3 percent and the U.K.'s FTSE 100 added 0.4 percent while France's CAC 40 dipped 0.4 percent.