European markets anticipated to begin the week with uncertainty in a divided market condition.

European markets anticipated to begin the week with uncertainty in a divided market condition.
European markets anticipated to begin the week with uncertainty in a divided market condition.

European stocks are predicted to begin the new trading week with uncertainty in a split market on Monday.

According to IG's data, the U.K.'s index has opened 25 points higher at 8,389, while Germany's index has decreased by 2 points at 18,904. France's index has fallen 12 points at 7,622, and Italy's index has decreased by 12 points at 34,405.

Last Friday, regional markets finished higher, ending the month of August, as investors evaluated global inflation data and anticipated the U.S. Federal Reserve's potential interest rate cuts in September.

The personal consumption expenditures price index, which is the Fed's preferred inflation gauge, increased by 0.2% on a monthly basis in July and 2.5% from a year ago. This result was in line with the estimates of economists polled by Dow Jones. Additionally, excluding food and energy, the index also rose 0.2% from the previous month. This data is likely to impact policymakers' rate decision in September.

Overnight, Asia-Pacific markets dropped as investors evaluated the six-month low of 49.1 in China's official purchasing managers' index data for August, which was a faster contraction than the 49.4 seen in July.

The latest manufacturing PMIs from Spain, Italy, France, U.K. and Germany will be released in Europe on Monday, with no significant earnings announcements expected.

U.S. markets are closed on Monday for the Labor Day public holiday.

by Holly Ellyatt

Markets