LONDON — European stocks are expected to start the new trading week on a positive note after a volatile few days in which investors weighed concerns over bad loans on Wall Street.

The U.K.'s FTSE index is expected to open 0.32% higher on Monday, Germany's DAX is seen up 0.67%, France's CAC 40 is expected to rise 0.62% and Italy's FTSE MIB is seen 0.65% higher, according to data from IG.

Regional markets closed in the red on Friday, with the pan-European Stoxx 600 down 0.95%, as concerns over the U.S. banking sector hit European sentiment.

Last week, U.S. lenders Zions and Western Alliance disclosed issues tied to bad loans , leading shares of several financial heavyweights and regional banks lower, before they rebounded on Friday.

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