European stocks traded higher in morning trade on Monday as investors cheered a rally in oil markets and awaited the start of the Federal Reserve’s policy meeting this week.
The pan-European Euro Stoxx 600 Index was higher on Monday with all sectors and bourses in positive territory. Oil markets were in focus with prices rising overnight after Venezuela said that OPEC and non-OPEC countries were close to reaching an output stabilizing deal, Reuters reported.
Investors were also looking ahead to a meeting by the U.S. Federal Reserve. The central bank starts a two-day meeting on Tuesday but the chances of a rate hike at this meeting are slim following a deluge of disappointing U.S. data.
“Central banks dominate the week, above all the Fed and the Bank of Japan, though there are also rate decisions in Egypt, Ghana, Indonesia, Kenya, New Zealand, Nigeria, Norway, Paraguay, Philippines, South Africa and Turkey,” Marc Ostwald, a strategist at ADM Investor Services, said in a note Monday.
Merkel blow
Meanwhile, New York City remains on high alert after an explosion in central Manhattan injured 29 people in what State Governor Andrew Cuomo called a “clear act of terrorism.”
In Germany, Chancellor Angela Merkel’s CDU party suffered its second electoral blow in two weeks on Sunday, slumping to its lowest level since 1990 in a Berlin state vote that rejected her open-door refugee policy, Reuters reported. In other news, early polls show Russia’s ruling United Party comfortably winning the country’s parliamentary elections that took place on Sunday.
Deutsche Bank continues slide
In individual stock news, shares of Weir Group rose 4.9 percent after an analyst upgrade from JP Morgan.
Rolls Royce announced Sunday that it would be cutting 200 management jobs as part of its restructuring; share were up 1.9 percent.
Deutsche Bank shares were down 2.2 percent, extending Friday’s losses, after the German lender was asked to pay a $14 billion settlement by the U.S, Department of Justice.
Source: CNBC
