European shares seen higher as political news takes center stage
Looking to the major bourses, the U.K.’s FTSE 100 is expected to open 18 points higher at 7,553, while the German DAX is set to start on a positive note, up 27 points at 13,018 and the French CAC up 15 points at 5,366, according to IG.
On the political front, Catalan President Carles Puigdemont has until 9:00 a.m. London time Monday to shed light on whether he will be calling for independence in the Catalonia region of Spain.
Spain’s IBEX and the nation’s stocks will be an area to watch in morning trade, with investors waiting to see how the outcome will affect market trade. The IBEX is expected to open higher, according to IG.
Meanwhile, British leader Theresa May will be making her way to Brussels on Monday to meet with Jean-Claude Juncker, the president of the European Commission, and the European Union’s chief Brexit negotiator Michel Barnier.
The announcement comes on the heels of news last week that Brexit negotiations between the U.K. and EU had reached a “state of deadlock,” following the fifth round of talks.
Elsewhere, investors are likely to be digesting the latest election news coming out of Austria. The country’s Foreign Minister, Sebastian Kurz declared victory for his party, the conservative Austrian People’s Party, as the political party was seen to be on track to win the election on Sunday; however several postal ballots are still yet to be counted.
Over the weekend, the Vice President of the European Central Bank, Vitor Constancio said in Washington that inflation in the euro zone would advance as the economic recovery in Europe continues to gather pace, yet it remained conditional on the degree of monetary accommodation given, according to Reuters.
Looking to the energy market, crude futures were in the black Monday, with prices boosted on the back of fears over potential new U.S. sanctions against Iran, and political turmoil in Iraq. At 6:40 a.m. U.K. time, Brent was hovering around $57.80 while U.S. WTI was trading at $51.90.
Elsewhere, balance of trade data for the euro area is set to come out in morning trade.
Source: CNBC
