LONDON, Nov 11 (Reuters) - European shares headed for a higher open on Monday, with investors betting that the growing pace of U.S. economic recovery will offset any negative impact of the Federal Reserve’s likely move to cut stimulus.
U.S. stocks rose 1.1 to 1.6 percent in the previous session, while Japanese shares climbed 1.3 percent on Monday after Friday’s strong U.S. jobs data showing the creation of 240,000 jobs last month, much higher than expected 125,000.
The jobs report raised concerns that the U.S. central bank could start trimming its bond buying operations, which have supported equities and helped them to scale new highs, sooner than expected, but investors focused on the positive impact of the strength of the economy.
“Finally markets appear to be reacting rationally to economic data,” Credit Agricole said in a note.
“While the data added further weight to the potential for Fed tapering in December or January, it was also recognised as evidence of a growing economy, and one that barely flinched in the wake of the government shutdown.”
However, investors were expected to stay cautious and gains were likely to be capped on concerns about policy tightening in China, the world’s second-biggest economy, after the release of inflation figures over the weekend.
China’s annual inflation hit an eight-month high of 3.2 percent in October on soaring food costs, but factory output and investment numbers pointed to signs of stabilisation in the economy.
At 0742 GMT, futures for the Euro STOXX 50, Britain’s FTSE 100 , Germany’s DAX and France’s CAC were 0.3 to 0.5 percent higher.
German Bund futures were 9 ticks higher on the day at 141.11.
The pan-European FTSEurofirst 300 index closed 0.1 percent lower in the previous session after falling to its lowest in more than a week. However, the index is still up more than 14 percent so far this year.
Investors focus will be on GDP data later this week from euro zone and from major European countries including Germany and France for hints about the pace of economic recovery in the region after recent positive numbers.
Moody’s move to change its outlook on Portugal’s rating to “stable” from “negative” also highlighted that the region was on a recovery path. -------------------------------------------------------------------------------- > Asian shares, currencies fall on Fed tapering concerns > Dow, S&P 500 end higher for fifth straight week; financials lead > Nikkei rises 1.3 pct on U.S. optimism, exporters outperform > Bond prices slump as job growth tops forecasts > Dollar stands tall after jobs surprise revives Fed taper talk > Gold extends drop as US jobs data spurs taper fears > Copper steadies after robust Chinese factory data > Brent rises towards $106 after Iran talks end without deal
Swiss pharma group Novartis said on Monday it was selling its blood transfusion diagnostics unit to Spain’s Grifols for $1.675 billion. For more click on
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