European equity markets are poised for a positive start to the week, driven by a confluence of softer U.S. labor data and declining energy costs.
The Paris CAC 40 index is expected to open approximately 0.9% higher, while Germany’s DAX is also tracking for gains, as investors recalibrate expectations for Federal Reserve policy.
The market move follows a week in which the CAC 40 traded near equilibrium on Friday, July 3, as participants weighed optimism over potential monetary easing against sector-specific headwinds.
The latest U.S. employment figures have intensified bets that the Fed will adopt a less hawkish stance on interest rates than previously anticipated, providing a tailwind for risk assets across the continent.
Commodity markets are also contributing to the improved sentiment.
Oil prices have retreated, reducing input cost pressures for European industrials and consumers.