(RTTNews) - European stocks are set to open higher on Monday, tracking gains on Wall Street Friday. Additionally, firmer oil and metal prices may offer some support. However, volatility may prevail as investors shift their focus towards more third-quarter earnings from the U.S.

On the economic front, U.K. interest rates will stay low for years, even as the country has to raise money through tax rises and spending cuts to bring down its burgeoning fiscal deficit, the Centre for Economics and Business Research said. The institution expects that the pound would fall to below parity with the euro.

Asian stocks showed a mixed performance on Monday as investors tread a cautious path ahead of earnings announcements by big U.S companies. Most of the markets in the region have either pared their early gains or slipped into the red with a section of investors looking keen on taking profits after recent sharp rallies. The Japanese market was closed for a public holiday.

On Wall Street, the major averages rose by around 0.7% each Friday on the back of an encouraging trade balance report and Fed Chairman’s statement that low interest rates would likely remain in effect for the foreseeable future. Crude oil prices are now trading up over a percent at $72.53 a barrel.

In corporate news, Cadbury’s trading update next week will be critical to its attempts to fend off a takeover approach from Kraft Foods Inc., the Financial Times reported.

Italian caterer Autogrill SpA said consolidated revenues would be around 5.7 billion euros ($8.4 billion) in 2009.

Koninklijke Philips Electronics NV reported third quarter net income attributable to stockholders of EUR 174 million or EUR 0.19 per basic share, versus EUR 57 million or EUR 0.06 per basic share in the same period last year.

According to the Financial Times on Sunday, U.K.-based financial services provider Barclays Plc is planning to spin off its GBP 4 billion portfolio of complex low-quality credit assets as part of an ongoing process to clean up its balance sheet.

Belgium’s bank Dexia SA said it won’t pay interest on its 500 million euros of perpetual bonds following talks with EU regulators.

Europe’s truck maker MAN SE had replaced “almost the complete leadership” of its sales team for the German commercial vehicles division in response to a bribery case, German weekly Der Spiegel reported without citing sources.

Electricite de France SA received approval from the U.S. Nuclear Regulatory Commission to transfer operating licenses for Constellation Energy Group Inc’s nuclear-power plants to a joint venture.

Italy’s phone firm Telecom Italia SpA denied reports that it is evaluating any hypotheses concerning
Telekom Austria.

Swiss drug maker Novartis AG entered into an agreement with Locus Pharmaceuticals to enhance its drug discovery efforts using the Locus technology.

The European markets fell on Friday, as mining stocks slipped after metals prices retreated and
official data showed that German trade surplus declined sharply in August on an unexpected fall in exports.

The FTSEurofirst 300 index of pan-European blue chips closed 0.30% lower, while the narrower DJ Stoxx 50 index fell 0.43%. Around Europe, France’s CAC 40 index fell 0.19% and Germany’s DAX index declined 0.08%, while the the U.K.’s FTSE 100 index edged up 0.14%.

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Posted in Categories: Eurozone, Japan, Releases, Stocks, Switzerland, UK, USA.

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