European markets seen lower; euro hits 2-month high against dollar

European stocks were seen lower on Monday morning on the back of weakness in Asian equities, while the euro reached a two-month peak against the dollar amid positive German data and hopes that a political crisis in the country can be resolved.

The FTSE 100 is seen down by 12 points at 7,401; the DAX is expected to start 24 points lower at 13,043 and the CAC 40 is poised to open down 10 points at 5,379.

The euro climbed to a two-month high against the dollar Monday. The single currency was supported by fresh record highs for Berlin’s business confidence and an agreement by Germany’s Social Democrats to hold talks with Chancellor Angela Merkel in a bid to form a new coalition government.

In Asian trade, stocks pared early gains to fall back from decade highs on Monday, as weakness in China and South Korea weighed. Shares excluding Japan were down 0.65 percent as leading stock indexes in Beijing and Seoul dipped more than 2 percent.

Asian equities also appeared to have lost ground on Monday morning after late-week holidays in Japan and the U.S. and amid cautious sentiment ahead of major economic releases around the world later in the week.

Meanwhile, oil prices were slightly lower on Monday, falling away from two-year highs amid expectations of increased U.S. output. However, the prospect of an OPEC-led supply cut extension later in the week, appeared to cap losses. The major oil producing group is due to meet on Thursday.

Brent crude traded at around $63.85 a barrel Monday morning, down 0.02 percent, while U.S. crude was around $58.69 a barrel, down 0.44 percent. Source: CNBC