GLOBAL MARKETS: European Stocks To Open A Busy Week Higher

LONDON -- European stock markets are expected to open marginally higher Monday, as investors approach what is expected to be a hectic week with continued bullish enthusiasm.

"This week is set to be busy on both the economic and corporate calendars, with the U.S. jobs report due on Friday and the usual raft of earnings data during the week," said Ian Griffiths, a dealer at CMC Markets.

"We will have to tiptoe through a minefield of earnings and corporate data this week if we are to post any more gains," added Griffiths, "but the growing optimism of a swift economic recovery is continuing to fuel the fire."

He expected London's FTSE 100 index to open 11 points higher at 4619, Frankfurt's DAX index up 19 points at 5351, and the CAC-40 index in Paris seven points higher at 3433.

The headliners on the corporate front will be from the U.K. as both Barclays and HSBC are Monday set to show that it's business as usual for the banking industry in the U.K., noted Griffiths.

"Leaving the mess of the last 18 months behind them is going to be important for these institutions, but many investors will be cautious as so much is expected from these big high street names," said Griffiths.

Asian stock markets were mixed Monday, with some helped by a better-than-expected performance for the U.S. economy in the second quarter.

Markets were moving in tight ranges, and, "trading may be directionless as investors are likely to stay on the sidelines before U.S. indicators such as ISM manufacturing index due later in the global day," said Kazuhiro Takahashi, general manager at Daiwa Securities SMBC.

Japan's Nikkei 225 closed 0.1% lower, but South Korea's Kospi Composite ended 0.5% higher. Hong Kong's Hang Seng Index was last seen 0.6% higher.

As far as the U.S. markets were concerned, a blistering July ended on a slightly positive note Friday as a report of a slowing contraction for the U.S. economy fueled gains.

The Dow Jones Industrial Average, which closed up 17.15 points, or 0.2%, to 9171.61, on Friday, tacked on 724.61, or 8.58%, for the month. The July gains mark the index's best month-long move since October 2002 and the best July since 1989. The Standard & Poor's 500 rose 0.73 point, or 0.1%, to 987.48, but the technology-heavy Nasdaq Composite Index, closed down 5.8, or 0.3%, to 1978.50.

For Friday, the report that gross domestic product declined by 1% in the second quarter was another better-than-expected result. Economists had expected that number to be around 1.5%; with the data helping improve sentiment as investors now seemingly believe there is a slowdown in the pace of deterioration for the economy.

In foreign exchange markets, the euro rose to a two-month high against the dollar in Asia as investors sought out more risky currencies.

It got as high as $1.4310 during the Asian session, its highest level since June 3, but soon gave up those gains as non-Japanese investors took profits.

"The improvement in the global growth outlook makes it easier for growth sensitive currencies to continue their out-performance," said Geoffrey Yu at UBS, "and all major currencies bar the Japanese yen are still expected to outperform the dollar in the current risk environment."

At 0600 GMT, the euro stood at $1.4234, and at Y134.72.

Elsewhere, spot gold was trading higher at $953.20 per troy ounce, up around $1 from its close in New York.

Front-month Nymex crude oil futures were 76 cents higher at $70.23 a barrel on Globex, pushing above the $70 a barrel level after settling at a one-month high Friday, $69.45, amid renewed demand from investors for assets which stand to benefit from an economic recovery.

Meanwhile, European government bonds have opened stronger Monday, catching up with the rise in Treasurys on Friday after investors parsed the details of the second quarter gross domestic product release.

Components of the report indicated worrying trends in consumer spending and declining pressures on inflation, which are favorable for bond investors.

At 0610 GMT, the September bund contract stood at 122.09, 0.05 higher.