The FTSE 100 is seen opening up around 14 points at 7,375, the CAC is expected to open 18 points higher at 5,423, while the DAX is poised to start 28 points higher at 12,565, according to IG.
Looking to Europe’s trading day, a slew of corporate earnings are due to be published including AMS, Michelin, and Tele2. Early Monday, Swiss bank UBS reported better-than-expected first quarter earnings with net profit up 19 percent. Philips has also released its first quarter earnings, with sales coming in at 3.9 billion euros ($4.79 billion).
When it comes to economic data, purchasing managers’ index (PMI) data out of France, Germany and the euro zone are expected to keep investors on their toes during the start of the trading day.
In markets overseas, stocks in Asia came under pressure during Monday’s session as investors kept a close eye on the U.S. bond market. On Friday, the yield on the 10-year Treasury note hit 2.96 percent, its highest level since January 2014, while the two-year yield rose to its highest level since September 2008.
Another area of the market that is keeping investors on edge is oil prices. While crude futures dipped during Monday’s session, markets remained supported by strong demand. Prior to the open, prices were relatively flat with Brent hovering above $74 and U.S. WTI wavering around $68.30.
Another topic expected to keep investors busy concerns geopolitics. On Saturday, North Korea pledged to halt nuclear and missile tests, with the nation adding that it would be scrapping its nuclear test site in order to pursue peace and economic growth instead. President Donald Trump tweeted on Sunday, however, that the North Korean nuclear crisis was far from resolved.
Consequently, the topics of North Korea, global trade and the Iran deal will be of key importance when Trump meets with both German Chancellor Angela Merkel and French President Emmanuel Macron in separate meetings this week.
Source: CNBC
