European Shares Seen Lower As Risk-off Sentiment Prevails

(RTTNews) - European stocks look set to open on a sluggish note Monday, with upcoming U.S. economic data and news surrounding Fed reshuffle likely to be in the spotlight.

U.S. equity futures edged lower after a week of modest gains following dovish signals from Federal Reserve officials.

President Donald Trump said on Sunday he has chosen his pick for the next Federal Reserve Chair but didn't reveal any names.

According to media reports, Kevin Hassett, the head of the White House National Economic Council and Trump's top economic adviser, is widely seen as the frontrunner to replace Jerome Powell.

Other contenders for the post include former governor Kevin Warsh and current governor Christopher Waller. A shift in leadership could influence the Fed's policy trajectory significantly.

In economic releases, this week's trading may be impacted by reaction to the release of U.S. reports on manufacturing, service sector activity and private sector employment.

As the Fed enters its pre-meeting blackout period, Cyber Monday sales data, September's PCE inflation report, the University of Michigan's sentiment and inflation expectations surveys, and speeches by Fed Chair Jerome Powell and Governor Michelle Bowman will be in the spotlight.

Asian markets were mixed after official data showed China's factory activity improved in November but shrank for the eighth consecutive month.

Japan's Nikkei was down nearly 2 percent as the yen strengthened, and Japanese government bond yields surged on speculation of a December interest rate hike by the Bank of Japan.

The Bank of Japan will consider the "pros and cons" of raising interest rates at its December 18-19 policy meeting, Governor Kazuo Ueda said today - sending 10-year government bond yield to 1.84 percent, the highest level since June 2008.

Gold climbed to a six-week high and silver rose to a record, driven by a softer dollar on rising expectations for an interest-rate cut in the United States this month.

Risk-off sentiment prevailing in financial markets also helped buoy safe-haven demand for the precious metals.

Oil prices jumped nearly 2 percent after the oil cartel led by Saudi Arabia confirmed it will stick with plans to pause production hikes during the first quarter.

Traders also weighed the fallout from U.S. President Donald Trump's rhetoric around Venezuela.

U.S. stocks advanced in thin trade on Friday as Wall Street returned from the Thanksgiving holiday for a shortened session.

The tech-heavy Nasdaq Composite climbed 0.7 percent but fell nearly 2 percent for November, ending a seven-month winning streak.

The Dow rose 0.6 percent and the S&P 500 added half a percent for their fifth consecutive session of gains.

European stocks eked out modest gains on Friday to close the month on a robust note amid optimism surrounding potential U.S. rate cuts.

The pan European Stoxx 600, the German DAX, France's CAC 40 and the U.K.'s FTSE 100 all rose by 0.3 percent.