European shares are expected to open flat to higher on Monday following the positive trend set in Asian markets. The FTSE is expected to open up 26 points lower at 6,336, the German DAX up 25 points at 8,876 and the French CAC down 3 points at 4,030. Asian equities started the week with a broad-based rally. Investor attention is focused on developments in China where members of the Central Committee of the ruling Communist Party will gather for their fourth plenum. Markets have been buoyed by better-than-expected earnings and better economic data out of the U.S. On Friday, data showed that consumer sentiment in early October rose to a seven-year high. Last week, market volatility left the S&P 500 index nursing its longest weekly loss streak since 2011. Comments from Federal Reserve officials were in focus with Chair Janet Yellen voicing concern about income inequality on Friday, while St. Louis Fed President James Bullard said on Thursday that the central bank should think about postponing the end of its bond purchases. In Europe news, attention will be on whether Frances draft 2015 budget will get the seal of approval from the European Commission despite it breaking deficit-cutting commitments. On Sunday, the German weekly Der Spiegel said France and Germany could be working on a deal to enable the commission to approve the budget. Also on the calendar: German producer prices, euro zone current account and Italys industrial orders data are due. Earnings are expected from OMV, SAP, Royal Philips and Electrolux.
Posted on: Mon, 20 Oct 2014 05:37:54 +0000
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