BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks may open on a positive note Monday, though underlying sentiment will likely remain cautious amid an impasse in U.S. economic stimulus negotiations, simmering U.S.-China tensions and rising coronavirus infections in some U.S. states.
The U.S. Senate is due to go into recess on 7 August, leaving little time for Republicans and Democrats to reach agreement on the latest stimulus package.
White House Chief of Staff Mark Meadows warned Sunday he was not optimistic on reaching agreement soon on a stimulus deal.
As the United States enters a new phase of the pandemic, a senior Federal Reserve official on Sunday urged Congress to act to spend big on coronavirus relief efforts and suggested a fresh lockdown.
Fitch Ratings cut the outlook on the United States' triple-A rating to negative from stable and said the future direction of U.S. fiscal policy depends in part on the November election and the resulting makeup of Congress.
The Trump administration will announce measures shortly against 'a broad array' of Chinese-owned software deemed to pose national-security risks, U.S. Secretary of State Michael Pompeo said.
According to media reports, Trump has agreed to give China's ByteDance 45 days to negotiate a sale of popular short-video app TikTok to Microsoft Corp.
Asian markets are trading mixed even as a private survey showed China's factory activity expanded at the fastest pace decade in July.
The dollar regained some ground as Japanese Finance Minister Taro Aso described the yen's recent rise as 'rapid'. Gold edged up while oil prices slipped on oversupply concerns as OPEC and its allies wind back production cuts in August.
Factory Purchasing Managers' survey data from euro area and the U.K. are due later in the session, headlining a light day for the European economic news.
Across the Atlantic, reports on manufacturing and service sector activity, construction spending, factory orders, the U.S. trade deficit, weekly jobless claims and the monthly jobs data may shed light on the pace of recovery this week.
U.S. stocks ended mostly higher on Friday as better than expected quarterly results from several leading technology companies overshadowed continued uncertainty about the government's next round of coronavirus aid.
The Dow Jones Industrial Average inched up 0.4 percent, the tech-heavy Nasdaq Composite index rallied 1.5 percent and the S&P 500 added 0.8 percent.
European markets fell on Friday as virus worries persisted, the U.K. reintroduced new coronavirus restrictions in parts of northern England and data showed the euro area economy contracted at the fastest pace on record in the second quarter amid the coronavirus pandemic.
The pan European Stoxx 600 gave up 0.9 percent. The German DAX slid half a percent, France's CAC 40 index lost 1.4 percent and the U.K.'s FTSE 100 tumbled 1.5 percent.
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