European Shares To See Cautious Start On China Concerns

(RTTNews) - European stocks may open on a sluggish note Monday amid concerns that higher borrowing costs could affect economic growth and corporate earnings.

Asian markets were mostly lower ahead of key inflation data from across the region due this week.

Japan's Nikkei average rose about 1 percent as the yen nudged towards the closely watched 150 per dollar level following the Bank of Japan's decision on Friday to keep stimulus unchanged.

Hong Kong's Hang Seng index fell more than 1 percent on concerns over a broader debt freeze in China's property market after embattled developer China Evergrande Group said it was unable to issue new debt due to an ongoing government investigation into a unit.

Gold edged lower as a stronger dollar offset growing fears of a U.S. government shutdown. Oil prices were seeing modest gains as investors focused on a tighter supply outlook.

In economic releases, Germany's closely watched Ifo Institute survey of business conditions for September may attract investor attention later in the day. U.K. GDP and EU inflation numbers as well as China manufacturing PMI data will be in focus as the week progresses.

Across the Atlantic, the Fed's preferred inflation readings, a speech from Fed Chair Jerome Powell, Q2 GDP final estimate and other reports on new home sales, durable goods orders and consumer confidence are likely to be in focus this week.

U.S. stocks ended lower for a fourth day running on Friday as yields climbed amid growing fears that the Federal Reserve may keep interest rates higher for longer.

Concerns about a potential government shutdown also added to angst over lofty interest rates.

The tech-heavy Nasdaq Composite finished marginally lower to end at its lowest level in over three months while the S&P 500 slipped 0.2 percent to hit a three-month closing low and the Dow dropped 0.3 percent to reach a two-month closing low.

European stocks closed mostly lower on Friday as data showed business activity in the euro zone currency bloc contracted again in September.

The pan European STOXX 600 declined 0.3 percent. The German DAX finished marginally lower and France's CAC 40 shed 0.4 percent while the U.K.'S FTSE 100 closed flat with a positive bias.