European Shares Seen Tad Lower As Focus Shifts To Earnings

(RTTNews) - European stocks are seen opening a tad lower on Monday as focus shifts to the upcoming earnings season.

Technology stocks could be in focus after Nvidia Corp's server assembly partner Hon Hai Precision Industry reported a bigger-than-expected 40 percent jump in quarterly sales and said AI demand is growing further.

U.S. equity futures were broadly higher following a record-setting week for the Dow Jones Industrial Average.

After a blistering first-half, traders are waiting to see whether the AI-driven rally can be sustained in Q3 and beyond, probably into 2027 as well.

AI will continue to drive discussions around future market moves as focus shifts from AI optimism to monetization.

Significant questions remain over whether massive spending on AI infrastructure will translate into profits and deliver returns fast enough to support lofty valuations.

In economic releases, a slew of index readings from S&P Global and the Institute of Supply Management along with the minutes of the Federal Reserve's last meeting will be in the spotlight this week following last week's disappointing June jobs report.

As yields hover near 5 percent, U.S. Treasury auctions for 10-year and 30-year bonds will have implications for crypto and risk assets.

Asian markets were mixed while the U.S. dollar steadied near a two-week low after posting its biggest weekly drop last week since April.

Gold was half a percent lower at $4,151 an ounce after posting its first weekly advance since May on reduced expectations for immediate Federal Reserve rate hikes.

Brent crude futures traded below $72 a barrel, hovering at their lowest levels since late February as flows persisted via the Strait of Hormuz and OPEC+ agreed to raise its collective oil production target by a further 188,000 barrels per day from August.

U.S. stock markets were closed on Friday in observance of Independence Day.

European stocks hit a record high on Friday and logged a fourth straight week of gains as weak jobs data spurred hopes that the U.S. Federal Reserve will not tighten its monetary policy for now.

The pan European Stoxx 600 climbed 0.7 percent. The German DAX surged 0.8 percent, France's CAC 40 rose 0.4 percent and the U.K.'s FTSE 100 added 0.3 percent.