European markets seen higher; new North Korea sanctions, data eyed

Big 5

Bourses in Europe are expected to start the week higher, taking cues from other global markets after a stronger-than-expected jobs report in the U.S.

The FTSE 100 is seen 15 points higher at 7,529; the DAX in Germany is set to open up by 10 points at 12312 and the CAC 40 is seen higher by 11 points at 5,212.

With the earnings season mostly over, investors will be watching out for new data reports. The Swiss National Bank is set to publish foreign exchange reserves and announce inflation numbers after 8:00 a.m. London time. The U.K.’s Halifax house price index for July is due at 8.30 a.m. London time.

Basic resources stocks are set to be on investors’ radar after China iron ore prices jumped 7 percent on Monday on fears of supply shortage in the winter. BHP Billiton and Rio Tinto were up by more than 2 percent in Sydney.

Meanwhile, the United Nations decided to implement new sanctions against North Korea over its intercontinental ballistic missile tests. The sanctions could slash $3 billion of the country’s annual export revenue, Reuters reported.

In a telephone call on Sunday, President Donald Trump and South Korean President Moon Jae-in agreed to apply maximum pressure on Pyongyang. In China, state media reported that the U.S. needed to curb its “moral arrogance” over North Korea, also according to Reuters.

In commodity markets, oil prices edged lower on Monday morning but were still at a nine-week high after strong jobs data and a slight drop in rig counts in the U.S. Brent was trading at $52.2 per barrel and WTI was being sold at $49.44. Source: CNBC