The new trading week in European markets is expected to begin with an increase, coinciding with the continuation of the earnings season.

The new trading week in European markets is expected to begin with an increase, coinciding with the continuation of the earnings season.
The new trading week in European markets is expected to begin with an increase, coinciding with the continuation of the earnings season.

European markets were set to open higher on Monday as investors processed U.S. inflation data and prepared for a busy week of earnings and central bank meetings.

On Friday, the pan-European stock market closed higher as the global stock selloff eased and investors responded to a U.S. personal consumption expenditures price that was in line with expectations.

This week, Heineken, Philips, Pearson, and Associated British Foods will all release their earnings.

The Federal Reserve and Bank of England's latest policy meetings are being closely watched by investors for guidance on interest rate movements.

The Nikkei 225 in Japan led gains in Asia-Pacific markets on Monday, as the U.S. inflation print raised hopes for a rate cut. U.S. stock futures were also higher ahead of a continued stream of corporate earnings.

by Karen Gilchrist

Markets