European markets opened higher Monday, buoyed by optimism ahead of key central bank meetings. By 07:05 GMT, Germany’s DAX and France’s CAC 40 each gained 0.5%, while the UK’s FTSE 100 inched up 0.1%.
Investor focus is on the U.S. Federal Reserve, which meets this week amid signs of a cooling labor market and easing inflation. Hopes are rising that the Fed could cut interest rates when its meeting concludes Wednesday, pushing Wall Street indices, including the Nasdaq Composite, to fresh record highs last week. The Bank of England, which cut rates five times in just over a year, is expected to hold steady Thursday as inflation remains at 3.8%, the highest among G7 nations. Central banks in Japan, Canada, and South Africa are also set to announce decisions this week.
In Asia, weak Chinese data weighed on sentiment. Industrial output slowed to 5.2% year-on-year in August, the weakest since August 2024, while retail sales growth fell to 3.4%, the slowest since November 2024.
Corporate news also moved markets. German defense group Rheinmetall struck a deal to acquire Naval Vessels Luerssen from Luerssen Group, expanding into naval construction. UK online retailer AO World raised its profit outlook and launched its first share buyback after posting strong first-half revenue growth.
Oil prices extended gains on concerns over supply disruptions after Ukrainian drone strikes on Russian energy facilities. At 03:05 ET, Brent futures rose 0.3% to $67.22 a barrel, while WTI crude edged up 0.1% to $62.75. Both benchmarks advanced over 1% last week as attacks threatened key Russian terminals and refineries, raising risks for top buyers India and China.


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