European stocks are expected to open in mixed territory on Monday as the market remains focused on UK-EU negotiations on a post-Brexit trade deal.
London’s FTSE is expected to open 7 points lower at 6546, Germany’s DAX would open 41 more points at 13156 and France’s CAC 40 would be 24 points higher at 5531, according to IG.
Britain and the EU agreed on Sunday to continue negotiations on a Brexit trade deal, starting talks as talks continue as key differences remain. The British pound rebounded on the news, but British Prime Minister Boris Johnson still warned companies to be ready for a ‘no deal’ exit on December 31st, at the end of the transition period.
Johnson and European Commission President Ursula von der Leyen had said they would decide on Sunday whether there had been enough progress to merit further talks.
In other news, Germany will enter a full lockdown over the Christmas period amid an increase in deaths and coronavirus infections. Non-essential stores and schools will close across the country from Wednesday.
“We affirm that friends, relatives and acquaintances can meet a maximum of five people and two households and there is an exception only during the Christmas holidays from December 24th to 26th, but not on New Years Day and New Year’s Day, ”said the German Chancellor. Angela Merkel said this weekend.
In the developments of the coronavirus in the United States, CDC director Robert Redfield approved Pfizer’s Covid-19 vaccine, allowing inoculations to officially advance on Monday for people aged 16 or older. This follows the emergency FDA clearance of Pfizer’s vaccine last week. The United States has started shipping the doses to hundreds of distribution centers across the country.
US equity futures rose in overnight trading on Sunday, with markets showing a rebound after a losing week. Investors weighed in with updates on the deployment of the Covid-19 vaccine as well as the coronavirus stimulus deadlock in Washington.
Meanwhile, Asia-Pacific shares mostly rose in trading on Monday, as investors in the region reacted to approval of Pfizer’s Covid-19 vaccine in the United States.
Eurozone industrial production data for October are due on Monday; there is no expected benefit.