European stocks are seen opening higher on Monday, as worries about U.S. inflation receded and Treasury yields held steady after the White House pared down its infrastructure bill to $1.7 trillion from $2.25 trillion.

President Biden proposed to “change course” on his massive infrastructure bill, with cuts to investments in broadband and roads and bridges, but Republicans dismissed the changes as insufficient for a deal.

Trading volumes are expected to be thin with markets closed in Germany, Switzerland, Denmark, Norway, Belgium and Austria for the Whit Monday public holiday.

Asian markets traded mixed and the dollar held near three-month low while gold traded near four-month highs.

Oil prices rose after a storm formed in the Gulf of Mexico and Iran said a three-month nuclear monitoring deal had expired. Bitcoin rose to about $35,500 following another weekend of big price swings.

Optimism about economic re-openings bolstered the euro, but the gains were checked after ECB President Christine Lagarde said that it is still too early for the bank to discuss winding down its 1.85 trillion euro emergency bond purchase scheme.

EU leaders will be meeting in Brussels for a special meeting of the European Council later today to discuss pressing issues related to foreign affairs, climate change and COVID-19.

Across the Atlantic, this week’s trading may be impacted by reaction to reports on new home sales, consumer confidence, durable goods orders, and personal income and spending.

CEOs of the largest U.S. banks, including JPMorgan and Goldman Sachs, will testify before lawmakers in the Senate Banking and House Financial Services committees Wednesday.

U.S. stocks ended mixed on Friday as inflation concerns and talk of tapering kept investors on the edge. Traders also digested data showing that U.S. home sales fell for a third straight month in April.

The S&P 500 ended little changed with a negative bias and the tech-heavy Nasdaq Composite shed half a percent while the Dow rose 0.4 percent.

European stocks ended Friday’s session broadly higher after the release of positive euro zone PMI data and U.K. retail sales numbers.

The pan European Stoxx 600 advanced 0.6 percent. The German DAX edged up 0.4 percent and France’s CAC 40 index gained 0.7 percent while the U.K.’s FTSE 100 finished marginally lower.

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