European markets look set to follow a lacklustre tone set elsewhere overnight
European stocks are expected to start the new trading week flat to lower on Monday, amid a pullback in global markets.
London’s FTSE is seen opening 3 points lower at 6,724, Germany’s DAX down 33 points at 13,749, France’s CAC 40 down 7 points at 5,495 and Italy’s FTSE MIB 103 points lower at 22,170, according to IG.
European markets look set to follow a lacklustre tone set elsewhere overnight and last week; shares in Asia-Pacific traded mixed Monday as investors in the region reacted to the latest Chinese growth data showing that its GDP rose 2.3% last year. That compared against economists’ expectations for GDP expansion by just over 2%. Still, other data showed that retail sales in the country declined, contracting 3.9% for the year.
Meanwhile, U.S. stocks fell on Friday to close out a tough week as markets weighed President-elect Joe Biden’s $1.9 trillion stimulus plan, along with the latest earnings from some of the biggest U.S. banks. Markets in the U.S. are closed on Monday for a holiday.
Biden’s proposal, called the American Rescue Plan, includes increasing the additional federal unemployment payments to $400 per week and extending them through September, direct payments to many Americans of $1,400, and extending the federal moratoriums on evictions and foreclosures through September.
The plan also calls for $350 billion in aid to state and local governments, $70 billion for Covid testing and vaccination programs and raising the federal minimum wage to $15 per hour.
European investors will also be looking at Germany on Monday following the election on Saturday of Armin Laschet as the new chairman of the ruling CDU party. The move paves the way for him to possibly replace Angela Merkel as chancellor at elections later this year.