European stocks are set to start the week on a higher note as investors become more positive about trade relations between the U.S. and China as well as Italian politics, according to CNBC.
The FTSE 100 is seen up by 0.5 at 7723; the DAX is seen higher by 22.3 points at 13,020; and the CAC 40 is expected to start up by 10.2 points at 5545; according to IG.
In the Asian session, shares were mostly higher. These were supported by a tweet from President Donald Trump Sunday saying that he is working with the Chinese President to give the telecommunications equipment maker ZTE a chance to get back in business.
In Europe, the focus was on Italy, where the two anti-establishment parties- Five Star Movement and League- were locked in talks over the weekend. They have called the Italian President, Sergio Mattarella, to present the result of their negotiations.
If the President approves their deal, then a repetition of the March election will no longer be needed. As a result, the main Italian index was projected to open higher Monday morning.
In the meantime, European companies might be under pressure. This was after comments from the White House national security adviser, John Bolton, who told CNN Sunday that European companies might be hit by U.S. sanctions if the Europeans don’t follow Trump’s move to pull out of the Iran nuclear deal.
In the corporate world, earnings will continue to be in focus for markets on Monday. Net-a-Porter, Pirelli, ABN Amro and Centrica are among the companies reporting. OPEC will also release its latest monthly oil market report.