European markets seen higher as Brexit talks take center stage
European bourses are expected to open higher Monday, as investors shift their attention to political events across Europe.
The London FTSE 100 index is called to open 49 points higher at 7,512, the German DAX up 37 points at 12,789 and the French CAC up 15 points at 5,278, according to IG.
Investors in Europe will be keeping a close eye on the political sphere in the region on Monday, as U.K. Brexit Secretary David Davis goes to Brussels to begin negotiations.
The meeting – which is expected to see a structure for the negotiations be laid out along with an opportunity to build trust – marks almost one year since the U.K. voted to leave the European Union.
The discussions also come less than two weeks after Theresa May and her Conservative Party lost their overall majority in parliament, adding more uncertainty to the current state of British politics. Investors will be paying close attention to the pound during this week, to see how it reacts to any key news.
Sticking with the U.K., British stocks – in particular travel and leisure – will be closely watched on Monday.
This comes after news that a vehicle drove into a crowd of people near a mosque in the Finsbury Park area of London, authorities said early Monday morning.
According to the Metropolitan police, there were a number of casualties, with one man pronounced dead at the scene.
Elsewhere, French President Emmanuel Macron strengthened his political position over the weekend, after securing a majority in the country’s parliamentary election on Sunday.
Major airline and defence stocks will be in focus on Monday, as leading plane giants head to the International Paris Air Show in France, to hunt out multimillion or even multibillion-dollar deals.
Markets in Asia were posting solid gains ahead of Europe’s opening bell, with markets paying a close eye on news out of Europe, including the Brexit talks and the attack in London.
In oil, crude futures were under slight pressure in early morning trade, as concerns over a steady rise in U.S. production added fears over a glut in the market. At 6.30 a.m. London time, Brent was hovering around $47.22, while U.S. crude traded around $44.59.
Source: CNBC
