European markets seen higher amid merger news

European equities are set to start the last trading day of the month on a higher note as investors digest merger news and focus on earnings.

The FTSE 100 is seen up by 16 points at 7,520; the DAX is set to start up by 28 points at 12,615; and the CAC 40 is expected to open higher by 13 points at 5,491; according to IG.

In Asia, shares were higher as concerns over North Korea eased. Kim Jong Un, the leader of North Korea, is set to invite U.S. experts and journalists to witness the shutdown of a nuclear site in May, Reuters reported.

Back in Europe, Germany, France and the U.K. have joined forces against potential new tariffs from the U.S. On Sunday, the three countries urged the U.S. administration to not apply metal tariffs to Europe.

In March, President Donald Trump imposed a 25 percent duty on steel imports and a 10 percent duty on aluminum but Europe got a temporary exemption from the tariffs. Such exemption is set to end on May 1.

In the corporate world, markets will be reacting to news that Asda and Sainsbury’s will merge in a £15 billion ($20.67 billion) deal. The companies will be announcing details of their plan around 7 a.m. London time.

Furthermore, in Italy, Telecom Italia chief Amos Genish has said that his position in the firm would be “untenable” if activist fund Elliott gets the majority of the board seats during a shareholder vote Friday, Reuters reported. In other news, T-Mobile and Sprint said Sunday they agreed on a $26 billion deal merger.

Seb, WPP and Old Mutual will be releasing their latest earnings.

In terms of data, there will be retail sales out in Germany at 7 a.m. London time; loan growth numbers in the euro zone due at 9 a.m. London time; and preliminary inflation numbers in Italy and Germany at 9 a.m. and 1 p.m. London time, respectively.

Source: CNBC

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