European equities seen higher; oil in focus

European equities are expected to open higher on Monday taking cue from global market sentiment.

The FTSE 100 is seen higher by 51 points at 7,156; the DAX is seen up by 67 points at 11,596; and the CAC 40 is expected to open up by 26 points at 5,132; according to IG.

In Asia, equities turned positive after earlier losses on the back of global growth concerns. In currency markets, the dollar hit a 16-month higher earlier on Monday as investors believe that the Federal Reserve will continue raising interest rates.

In the meantime, oil prices were one of the focus on Monday after Saudi Arabia announced a cut in supply for December in a bid to halt a recent slump in prices. Brent rose 1.7 percent to trade at $71.38 and WTI was up by 1.3 percent at $61.01 at around 4.30 a.m. London time.

The planned cut comes at a time oif uncertainty for oil markets given U.S. sanctions on major producer Iran but Saudi Arabia’s Energy Minister Khalid al-Falih told CNBC on Sunday that the energy market has overreacted to the sanctions.

Investors will also monitor news out of Asia, where U.S. Vice President Mike Pence will participate at the U.S.-ASEAN Summit, as well as developments in the U.K.

Prime Minister Theresa May was reportedly forced to drop plans for an emergency Brexit cabinet meeting on Monday due to resistance in her own government, the Independent reported. According to the Sunday Times, four government ministers who are pro-European are on the brink of resigning. All eyes are now on a Cabinet meeting scheduled for Tuesday.

The earnings calendar is thin with Infineon and Lanxess due to report.

Source: CNBC