Europe stocks elevate ahead of crucial Brexit votes

European markets were higher on Monday morning as traders looked ahead to a crucial vote in the U.K. that will determine whether the country’s Brexit deal will be approved.

The pan-European Stoxx 600 was up nearly 0.37 percent with all sectors in the black. Banks were in the spotlight with the sector trading 0.7 percent higher. Commerzbank rose to the top of the index, up nearly 4 percent. This as Deutsche Bank reportedly agreed to hold merger talks with its rival after CEO Christian Sewing dropped his opposition to the deal. According to several media reports over the weekend, Sewing was forced to reconsider his stance following investor pressure over the bank’s declining performance.

The German Government, which still owns 15 percent of Commerzbank, is understood to be backing a tie-up between the country’s two largest lenders. Reuters reported that Berlin is pushing for a deal, even though it could cause a multi-billion euro financial hole, because it would force the re-evaluation of the lenders’ assets. Deutsche Bank shares were up by over 2 percent in early deals.

Meanwhile, it’s a crucial week for sterling with Brexit at the forefront of investors’ minds. U.K. Prime Minister Theresa May is facing a crunch series of votes this week that will determine the course of the U.K.’s exit. On Tuesday, U.K. lawmakers are voting on whether to accept her deal or not.

Brexit is expected to dominate a Eurogroup meeting of euro zone finance ministers on Monday ahead of an Economic and Financial Affairs Council (ECOFIN) meeting of all EU finance ministers Tuesday.

In other news, China’s aviation regulator has ordered Chinese airlines to suspend the operation of Boeing 737 MAX 8 planes following the crash of Ethiopian Airlines flight 302, the second deadly incident for the aircraft in less than five months.

source: CNBC