LONDON — European stocks are expected to open higher Monday with markets tracking positive sentiment in Asia and the U.S.
London’s FTSE is seen opening 40 points higher at 6,534, Germany’s DAX up 112 points at 14,171, France’s CAC 40 42 points higher at 5,695 and Italy’s FTSE MIB up 182 points at 23,272, according to IG.
European market sentiment looks set to be buoyed by positive market action elsewhere, although earnings and coronavirus developments remain in focus.
News that the more contagious South Africa variant of the coronavirus continues to spread throughout the U.S. is expected to rattle markets. On Friday, Virginia health officials reported the state’s first case of the strain first identified in South Africa.
On Sunday, South Africa halted distribution of AstraZeneca’s vaccine after a new study found it offers “minimal protection” against mild disease caused by the variant first discovered there.
Stocks in Asia-Pacific were higher in Monday trade, as investors monitored shares of China’s tech giants following the release of new anti-monopoly guidelines over the weekend. Meanwhile, U.S. stock index futures rose in early morning trading Monday, as the major averages looked to accelerate gains following the best week since November.
Hopes of an agreement over a U.S. stimulus plan have also risen after the Senate and House each passed a budget resolution on Friday, starting the reconciliation process that would allow President Joe Biden’s $1.9 trillion rescue package to get through the Democratic-held Senate with a simple majority.
Earnings continue to command market attention with Cisco, Twitter, Yelp, Uber, MGM, Mattel, GM, Coca-Cola and Disney all due to report stateside this week.
No major European earnings are due Monday. On the data front, the latest German industrial production figures are due.
-CNBC’s Pippa Stevens contributed to this market report.
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