VIENNA (Alliance News) - The major European markets are set to rebound Monday after falling more than 2% last week on geopolitical concerns. The risk of geopolitical tensions appear to be easing after Russia said it ended military drills near Ukraine and the US ruled out any ground forces becoming involved in the battle against ISIS militants in Iraq.
Meanwhile, an Egyptian-brokered 72-hour cease-fire has come into effect in the Gaza Strip, clearing the way for a permanent peace deal between Israel and Hamas.
US stocks finished in the black last week following strong gains on Friday, as reports of easing tensions in Ukraine spurred a hunt for bargains.
The Asian markets are broadly higher, with key benchmark indexes in China, Hong Kong, Taiwan and Japan rising 1-2% as the yen weakened against the dollar and mild Chinese consumer inflation data signaled policymakers still have room for monetary easing. A slew of Chinese economic reports on industrial production, retail sales and fixed-asset investment are slated for release on Wednesday.
The economic calendar is quiet in the European session. Across the Atlantic, traders will take cues from data on retail sales, producer prices and industrial production this week as the earnings season comes to an end.
In corporate news, Volkswagen Group of America, Inc., a unit of German auto giant Volkswagen AG, is recalling 151,389 Tiguan sport utility vehicles due to the possibility of stalling, according to the National Highway Traffic Safety Administration.
Private equity firm Blackstone Group L.P. is nearing a deal to buy European oil giant Royal Dutch Shell's 50% stake in a shale-gas field in Louisiana for about USD1.2 billion, media reports suggest.
Sanofi and MannKind Corp. announced a worldwide licensing agreement for development and commercialization of Afrezza (insulin human) Inhalation Powder, a rapid-acting inhaled insulin therapy for adults with type 1 and type 2 diabetes.
Swiss drugs giant Novartis AG said it would present new data revealing the reduction in cardiovascular deaths with Novartis' LCZ696 in patients with heart failure with reduced ejection fraction at the world's largest cardiology congress, the European Society of Cardiology Congress 2014, on August 31.
German engineering group Bilfinger Berger AG reported first-half net profit of 55 million euros, down 19% from 68 million euros last year.
Telecommunications provider QSC AG reported a net loss of 3.9 million euros in the second quarter, as against a net profit of 5.2 million euros in the corresponding period last year.
European stocks drifted lower but pulled back from intraday lows touched earlier on Friday, as regional growth concerns and the US offensive in Iraq overshadowed signs that tension over Ukraine crisis is easing. The German DAX slid 0.3%, France's CAC 40 edged down 0.1% and the UK'sFTSE 100 dropped half a percent.
US stocks rallied on Friday, as investors went bargain hunting in beaten-down stocks amid signals that Russia is looking to de-escalate the Ukraine conflict. The Dow rose 1.1%, the tech-heavy Nasdaq added 0.8% and the S&P 500 gained 1.2%.