(fxcue news) - European markets are expected to start the new week on an optimistic note even amidst anxiety ahead of crucial inflation updates due from Europe, U.K and the U.S. over the course of the week. Overwhelming expectations of a Fed rate cut in September is supporting market sentiment. The unfolding geopolitical situation in the Middle East is also seen swaying market mood. Wall Street had closed on a mildly positive note on Friday, marking the end of a turbulent week that witnessed whipsawing prices amidst U.S. economic growth concerns. Nasdaq Composite added 0.51 percent on Friday to close at 16,745.30 whereas the Dow Jones Industrial Average added 0.13 percent to finish trading at 39,497.54. Positive sentiment prevailed in the European bourses on Friday as markets reassessed the validity of recession concerns that rattled market sentiment earlier in the week. Switzerland's SMI and France's CAC 40 rallied more than 0.30 percent followed by U.K.'s FTSE 100 that gained 0.28 percent. Germany's DAX added 0.24 percent whereas the pan-European Stoxx-50 edged up 0.12 percent. Current indications from the European stock futures indicate a broadly positive sentiment. The DAX Futures (Sep) has gained 0.49 percent followed by the CAC 40 Futures (Sep) that has added 0.36 percent. The FTSE 100 Futures (Sep) has also added 0.16 percent. The pan-European Stoxx 50 Futures (Sep) has gained 0.15 percent. The SMI Futures (Sep) finished Friday's trading 0.90 percent higher. American stock futures are trading directionless. The US 30 (DJIA) is trading 0.01 percent lower, whereas the US500 (S&P 500) is trading 0.05 percent above the flatline. Asian stock markets are trading on a broadly positive note. Australia's S&P ASX 200 and DJ New Zealand have both gained close to half a percent. China's Shanghai Composite has edged up whereas Hong Kong's Hang Seng has gained 0.12 percent. India's Nifty 50 is trading mildly positive. South Korea's KOSPI has surged more than 1 percent. Markets in Japan are closed for a holiday. Amidst anxiety ahead of the crucial CPI update from the U.S. on Wednesday, the Dollar Index (DXY) has edged up. DXY, a measure of the U.S. dollar's strength relative to six currencies, is trading 0.04 percent higher at 103.18 versus the previous close of 103.14. The EUR/USD pair has edged up 0.04 percent to 1.0920 whereas the GBP/USD pair has gained 0.05 percent to trade at 1.2765. Gold reversed gains amidst the dollar's strength triggered by anxiety ahead of key inflation readings from the U.S. Gold Futures for December settlement is trading at $2,472.15, which is 0.05 percent lower than the previous close of $2,473.40. Simmering tensions in the Middle East kept crude oil prices elevated. Brent Crude Futures for October settlement added 0.30 percent to $79.90 whereas WTI Crude Futures for September settlement added 0.49 percent to $77.22. No major data releases are scheduled from the region on Monday except wholesale prices due from Germany. Major earnings updates due from the region on Monday include Hannover Rueck, Severn Trent, Land Securities Group, L'Occitane International, Graubuendner Kantonalbank, International Game Technology, British Land Company, Remy Cointreau and RS Group.