European Shares Set To Open Weak On China Data

(RTTNews) - European stocks are likely to open lower on Monday as investors await more earnings and economic data this week for clues about the state of the global economy.

China's factory activity unexpectedly contracted in July and the housing market continued to slump last month, separate data showed today, adding to concerns over demand outlook.

The Caixin survey showed slower factory activity growth in the month against the backdrop of fresh COVID-19 outbreaks and a darkening global outlook.

Elsewhere, Japan's manufacturing activity expanded at the weakest rate in 10 months in July and South Korea's factory activity fell for the first time in almost two years, underscoring the risks to global growth.

Asian markets traded mostly higher, while U.S. stock futures declined as investors looked ahead to a slew of economic data this week including reports on manufacturing, service sector activity and the U.S. trade deficit.

The big focus of this week will be the monthly U.S. jobs report due on Friday. On the earnings front, more than 20 percent of the S&P 500 companies will be unveiling their earnings this week.

Closer home, German retail sales, euro area manufacturing PMIs and Eurozone unemployment data will be in focus later in the day. The U.S. dollar sank to a fresh six-week low against the yen amid doubts about whether Wall Street's rally could be sustained.

Oil prices fell more than 1 percent in Asian trading as weak Chinese data added to worries about the outlook for fuel demand.

U.S. stocks rose for a third straight session on Friday as strong quarterly earnings from the likes of Amazon and Apple helped investors look past inflation concerns, with a key inflation gauge surging sharply again in June.

The tech-heavy Nasdaq Composite rallied 1.9 percent to reach a nearly three-month closing high, while the Dow added 1 percent and the S&P 500 surged 1.4 percent to hit their best closing levels in well over a month.

European stocks also closed higher on Friday as data showed economic growth in the euro zone accelerated in the second quarter.

The pan European Stoxx 600 climbed 1.3 percent. The German DAX rose 1.5 percent, France's CAC 40 jumped 1.7 percent and the U.K.'s FTSE 100 surged 1.1 percent.