Shares in Europe seen mostly lower as trade concerns take center stage
Shares in Europe are poised to start the week on a lower footing amid ongoing concerns over global trade.
The FTSE is seen down by 16 points at 7,291; the DAX is seen flat at 11,959; and the CAC in Paris is expected to open lower by 7 points; according to IG.
Global markets are focused on trade concerns after President Donald Trump said Friday that there could be an additional $267 billion in tariffs against China. The administration is also finalising plans to impose tariffs of up to 25 percent on $200 billion of Chinese goods.
Trump also suggested that Apple should move its production to the U.S. to avoid being caught up in the tariffs against China. Shares of Apple’s Asia-based suppliers were down on the news.
Back in Europe, investors are also digesting news out of Sweden, where a general election has led to a political deadlock. The two main political blocs almost tied with a margin of 0.3 percent separating them. More importantly, the nationalist Sweden Democrats (SD) saw a surge in support from a previous election, gathering 18 percent of the votes and placing third in the overall result.
Italy remains in the spotlight for investors ahead of the publication of the 2019 budget later this month. Speaking to CNBC over the weekend, a former director at the International Monetary Fund said that “even a minor recession” could be very dangerous, given how fragile the Italian economy is.
There are no substantial corporate results to note this Monday. But in terms of data, markets will be looking at balance of trade numbers out in the U.K. at 9.30 a.m. London time and inflation data due a bit later, at 10 a.m. London time.