European markets seen weaker at open, with oil, politics set to dominate

Oil is expected to continue to be at the forefront of investors’ minds on Thursday, as oil prices continue to fluctuate over concerns of a glut in the market.

Prices oscillated between gains and losses prior to Europe’s open, as glut concerns capped positive sentiment over a decline in U.S. stockpiles.

At 6.25 a.m. London time, prices were trading around the flatline with U.S. crude sitting around $42.53 a barrel, while Brent hovered around $44.81. Politics could also affect sentiment on Thursday, as the first day of a two-day European Council meeting kicks off.

At the summit, European Union leaders are set to focus on two objectives: strengthening the EU and protecting its citizens. Therefore key topics set to arise include terrorism, security, globalization and climate change.

British Prime Minister Theresa May is expected to make an appearance at the summit, where she is likely to inform other leaders of the U.K.’s intentions when it comes to exiting the political-economic bloc.

The day will also be closely watched to see if there’s any further news surrounding a deal between the Conservatives and the Democratic Unionist Party. Consequently, moves in sterling will be of key importance.

While there are no major earnings expected, investors are set to keep a close eye on energy stocks in light of the oil price turbulence, while defense and airline stocks will also be in the spotlight, in case any news comes out of the International Paris Air Show.

Markets in Asia were cautiously higher ahead of Europe’s opening bell on Thursday, as investors kept a close eye on the oil price.

On the data front, the Norway’s central bank, Norges Bank is expected to announce its latest interest rate decision in early morning trade.

Source: CNBC