European stocks are set to open just below the flatline Monday, as uncertainty surrounding the U.K.’s future relationship with the European Union remains a topic of debate.
The FTSE 100 is seen 10 points down at 7,016, the CAC 40 is set to open relatively flat, up 3 points at 5,030, while the DAX is poised to start 3 points lower at 11,348, according to IG.
Investors continue to err on the side of caution this week as turmoil surrounding Brexit shows no signs of alleviating. Last week, the British currency saw sharp losses, as a series of resignations called into question the state of the U.K. government and the future of a Brexit deal.
Over the weekend, Prime Minister Theresa May told Sky News that a change in Britain’s leadership would only delay the proceedings, after a number of politicians expressed concern over the current state of affairs, including the proposed agreement.
Scotland’s First Minister Nicola Sturgeon told the BBC that it would be “deeply irresponsible” if parliament endorsed May’s deal, adding that her party’s members of parliament (MPs) would vote against it.
Overseas, markets are keeping a close eye on U.S.-China relations, after President Donald Trump said last Friday that China wanted to “make a deal” with the States when it comes to trade. White House officials said that the comments shouldn’t be read into too much, however, as no sign of a deal has yet to materialize.
Consequently, investors are turning their attention to Trump’s upcoming meeting with China’s Xi Jinping in Argentina for any clues as to future developments. On Monday, stocks in Asia were pointing in different directions as investors remained on edge over these two political situations.
Looking to Monday’s session, investors will keep an eye out of data out of the euro zone, with construction output and current account figures due out in the morning part of the session.
No major earnings are scheduled.
Source: CNBC
