LONDON – European stocks are expected to open higher on Monday as investors continue to consider last week’s jobs data from the US and central bank decisions in Europe.
The UK’s FTSE index is seen opening 14 points higher at 7,522, Germany’s DAX 42 points higher at 15,137, France’s CAC 40 up 24 points at 6,967 and Italy’s FTSE MIB 20 points higher at 26,611, according to data from IG.
The higher open expected on Monday comes as central bank decisions last week continue to dominate market sentiment. Last week, investors in the region digested the latest decision from the European Central Bank, which kept interest rates unchanged in spite of record inflation levels across the euro zone. The Bank of England, meanwhile, hiked rates in its first back-to-back interest rate rise since 2004.
Major European bourses, including the French CAC index and Germany’s DAX, dipped into negative territory on Friday, with the German index shedding 1.8%.
US stocks rounded off last week with the S&P 500 and Nasdaq Composite jumping Friday to finish their best week of the year, as continued strength in earnings reports extended the tech-led rebound from the January route.
Traders on Friday also weighed a much stronger-than-expected jobs report and its potential impact on US monetary policy going forward. US stock index futures turned lower during overnight trading Sunday while shares in Asia-Pacific were mixed in Monday trade, with mainland China markets rising as they reopened following the Lunar New Year holidays last week.
Earnings in Europe on Monday come from Sanofi. Vinci and Intesa Sanpaolo and data releases include Italian industrial output for December.
Enjoyed this article?
For exclusive stock picks, investment ideas and CNBC global livestream
Sign up for CNBC Pro
Start your free trial now