(fxcue news) - European stocks are likely to open on a mixed note Monday amid the Labour Day holiday in the U.S. Asian stocks traded mixed, with Chinese and Hong Kong markets declining after an official survey showed activity in China's manufacturing sector reached a six-month low in August. A private survey revealed China's manufacturing activity swung back to growth in August but deterioration in external demand led to new export orders falling for the first time in eight months and at the fastest pace since November 2023. The dollar was steady as investors await more U.S. economic data for additional clues on the Fed's rate path. The monthly jobs report will be in focus this week, along with other reports on manufacturing, service sector activity and the Fed's Beige Book. Money markets currently expect the Fed to cut rates by 25 basis points (bps) in September, with odds of a 50-bps cut diminishing further after last week's data. Gold dipped below $2,500 per ounce in Asian trading and the dollar held near a two-week high against the euro, while oil extended losses on China demand concerns and signs OPEC+ will progress with a plan to lift output from October. Final factory PMI readings from Germany, France and the euro area may influence investor sentiment as the session progresses. U.S. stocks rallied on Friday as recession fears eased and the Personal Consumption Expenditures index showed prices increased in line with expectations in July -adding to bets the Fed is on track for a policy pivot in September. Data showed the Federal Reserve's preferred inflation gauge ticked up on a monthly basis from 0.1 percent in June to 0.2 percent in July. On an annual basis, the index held steady at 2.5 percent. The Dow rose 0.6 percent to reach a new record closing high while the S&P 500 added 1 percent and the tech-heavy Nasdaq Composite surged 1.1 percent. European stocks ended little changed on Friday even as the latest Eurozone and U.S. inflation data reinforced expectations of multiple rate cuts. The pan European STOXX 600 ended flat with a positive bias. The German DAX, France's CAC 40 and the U.K.'s FTSE 100 all ended marginally lower.