European Shares May Struggle For Direction

European stocks are seen opening mixed on Monday after Shanghai went into a nine-day semi-lockdown, adding to concerns over the Fed’s tightening path and the war in Ukraine.

The Chinese mainland reported 1,219 locally transmitted Covid-19 cases in the last 24 hours as the country’s financial hub launched a planned two-stage lockdown of the city.

Russian and Ukrainian negotiators will resume face-to-face peace talks this week after several previous rounds of peace talks failed to halt the fighting or overcome fundamental disagreements about Kyiv’s alignment with the West and Russia’s occupation of Ukrainian territory.

In comments made to Russian journalists, Ukrainian President Volodymyr Zelensky has said that his country is willing to discuss the adoption of a neutral stance and compromise over the status of the eastern Donbas region as part of a peace deal.

In another development, the White House said it isn’t seeking regime change in Russia.

Asian markets traded mixed while the dollar and yields edged higher, weighing on gold. Oil prices fell more than $3 a barrel on fears over weaker fuel demand in China.

U.S. stocks ended mixed on Friday after the release of disappointing housing and consumer sentiment data.

The Dow edged up 0.4 percent and the S&P 500 added half a percent as investors looked past increasingly hawkish commentary from Fed officials and reports of a missile strike on a Saudi Aramco facility. The tech-heavy Nasdaq Composite slipped 0.2 percent.

European stocks ended Friday’s session on a firm note after the U.S. and the European Union signed an agreement for the supply of liquefied natural gas to reduce reliance on Russian supply.

The pan European Stoxx 600 edged up 0.1 percent. The German DAX and the U.K.’s FTSE 100 both inched up around 0.2 percent while France’s CAC 40 index ended flat with a negative bias.

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