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European shares open little changed, London closed

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U.S. stock futures dip, oil prices tumble

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Taiwan dollar surges

By Dhara Ranasinghe

LONDON, May 5 (Reuters) - Oil prices tumbled over 2% on

Monday after oil producing group OPEC+ agreed to accelerate oil

production increases, while Taiwan's dollar surged to almost

three-year highs at the start of a central bank-packed week for

world markets.

European shares held just below Friday's one-month peaks

, while U.S. equity futures dipped and

overall trading was subdued by public holidays in Japan, China

and Britain.

Brent crude and U.S. West Texas crude futures fell more than

a $1 each after a weekend decision by OPEC to

further speed up oil output hikes fueled concern about more

supply coming into a market clouded by an uncertain demand

outlook.

Meetings of the U.S. Federal Reserve and Bank of England

later in the week were in focus as markets wait to see how major

central banks assess the outlook for growth and inflation

following heightened uncertainty unleashed by U.S. tariff

policy.

President Donald Trump said on Sunday the United States was

meeting with many countries, including China, on trade deals,

and his main priority with China was to secure a fair deal.

Optimism around a potential de-escalation of trade tensions

between the U.S. and China has boosted markets in recent days,

with European shares trading just below levels seen before

Trump's April 2 major tariff announcement roiled markets.

"Given the strength of the recovery there is downside risk

to markets if positive expectations on trade agreements are not

realised," said Nordea's chief market strategist Jan von Gerich.

Europe's broad STOXX 600 index is up 15% from lows hit last

month, while the S&P 500 stock index has rebounded around 17%

from more than one-year lows hit last month.

TAIWAN DOLLAR SURGE

In currency markets, it was the Taiwan dollar that hogged

the spotlight after a second straight session of sharp gains

against the U.S. currency.

The Taiwan dollar was poised for its biggest single-day gain

against the U.S. dollar since the 1980s, rising to as high as

29.59 per U.S. dollar. It was last trading at 30.04.

Its 3% surge on Monday has stoked speculation of a

revaluation of Asian currencies to win U.S. trade concessions

and underscores a broader re-rating of the region's economic

prospects.

"The Taiwan dollar is appreciating at a faster pace than

I've ever seen," said one senior Taiwanese financial industry

executive, speaking to Reuters on condition of anonymity as they

were not authorized to speak to the media.

"Hot money is coming into Taiwan, and the central bank is

allowing it," they added.

Taiwan's office of trade negotiations said on Monday that

tariff talks with the U.S. last week did not discuss the

exchange rate and Taiwan's central bank also did not take part

in the talks.

In London trade, subdued by a UK national holiday, the euro

firmed 0.21% to $1.1322, while the dollar slipped 0.5%

to 144.16 yen.

Market focus turned to this week's meeting of the Federal

Reserve, which is expected to keep rates steady.

Trump said on Sunday he would not remove Jerome Powell as

Federal Reserve Chair before his term ends in May 2026 while

describing the central banker as "a total stiff" and repeating

calls for the Fed to lower interest rates.

"The main event is the Fed and what is happening in politics

has not been forgotten," said Nordea's von Gerich.

Elsewhere in Europe, there was some focus on Romania where

hard-right eurosceptic George Simion won the first round of

Romania's presidential election rerun on Sunday.

A Simion victory could isolate Romania, erode private

investment and destabilise NATO's eastern flank, where Ukraine

is fighting a three-year-old Russian invasion, political

observers say.