Plus   Neg

European Shares Seen Up As Brexit Round 2 Talks Begin


European stocks may open slightly higher on Monday as weak U.S. data dimmed prospects of more Fed rate hikes this year and Chinese GDP figures topped forecasts.

Asian stock markets are broadly higher after data showed the Chinese economy grew an annual 6.9 percent in the second quarter, the same rate as the first quarter and beating the government's target amid pickup in industrial output and consumption. Sequentially, GDP growth picked up to 1.7 percent from 1.3 percent in the first quarter.

Crude futures inched higher in Asian deals on signs of strong refinery demand from China and gold prices rose on a weaker dollar while the British pound strengthened against other major currencies.

Meanwhile, to help revive the SPD's chances against German Chancellor Angela Merkel in September's election, SPD leader Martin Schulz has unveiled a 10-point "Future plan for a modern Germany" and called for the country to use its budget surplus on infrastructure investment. Merkel rejected criticism from her challenger that she was neglecting the country's infrastructure.

A second round of formal Brexit talks gets underway in Brussels today to discuss Britain's arrangements to leave the European Union.

U.S. stocks rose on Friday as oil prices rose, technology and healthcare stocks advanced and several banks reported their second-quarter earnings.

The Dow rose 0.4 percent and the S&P 500 added half a percent to reach fresh record closing highs while the Nasdaq Composite advanced 0.6 percent.

European markets ended Friday's session on a mixed note amid a drop in bank shares after their U.S. peers reported weaker trading revenue.

The pan-European Stoxx Europe 600 index closed 0.2 percent higher, led by commodity-related stocks.

The German DAX slid 0.1 percent and France's CAC 40 index closed marginally lower while the U.K.'s FTSE 100 shed half a percent.

by RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com

Market Analysis

Follow RTT