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European stocks to open lower after Brexit talks fail to lead to breakthrough

European stocks are set to open lower Monday morning, as concerns over Brexit talks, a potential slowdown in the Chinese economy and higher U.S. borrowing costs limited investor appetite.

The FTSE 100 is seen little changed from the previous session, at 6,995, while the CAC is seen down around 19 points at 5,075 and the DAX is poised to start 20 points lower at 11,503, according to IG.

Many investors remained in a cautious mood on Monday, following an abrupt market shakeout in the previous trading week. The global sell-off was blamed on a series of factors, including the impact of a U.S.-China trade war, a spike in U.S. bond yields and nervousness ahead of earnings season.

Back in Europe, investors were seen looking ahead to a crucial European summit on Wednesday. Negotiators from the U.K. and European Union failed to clinch a Brexit deal over the weekend, with both sides citing unresolved issues relating to frontier checks between Ireland and Northern Ireland.

The British pound traded at 1.3105 against the dollar Monday morning, around 0.4 percent lower.

Not helping market sentiment, oil prices spiked and stocks in Saudi Arabia tumbled amid heightened diplomatic tensions between Riyadh and the West. It comes after the kingdom threatened to punish countries considering sanctions over the disappearance in Turkey of a Saudi journalist critical of its policies.

In Asia, MSCI’s broadest index of Asia-Pacific shares, excluding Japan, were down around 0.4 percent on Monday.

Source: CNBC

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