Tuesday 21 November 2017

European factors to Watch-Shares seen lower, focus on telecoms

Traders talk in front of the German share price index DAX board at the stock exchange in Frankfurt, Germany
Traders talk in front of the German share price index DAX board at the stock exchange in Frankfurt, Germany

European shares were likely to open slightly lower on Monday after slipping to a one-month low in the previous session, with weaker metals and crude oil prices seen putting pressure on resource-related stocks.

Telecom stocks are also likely to fall sharply after talks between Orange and Bouygues on a deal to create a dominant French telecoms operator collapsed on Friday, ending an attempt to ease a price war that has ravaged operators' margins.

Futures for the Euro STOXX 50, Germany's DAX , France's CAC and Britain's FTSE fell 0.1 to 0.4pc.

Commodities stocks will be in focus after copper prices slid for a seventh straight session to its lowest in a month on lingering concerns about demand in top consumer China.

Oil prices also fell as the chances of Middle East producers agreeing to curb overproduction appeared to fade, while stubbornly high US output and worries about Asia's economic outlook also dragged on prices.

On the macroeconomic front, International Monetary Fund Managing Director Christine Lagarde denied on Sunday that IMF staff would push Greece closer to default as a negotiating tactic on a new Greek bailout deal, which she said was "still a good distance away."

The pan-European FTSEurofirst 300 index fell 1.5pc to a one-month low in the previous session.

However, a Reuters poll predicted on Friday that European shares will rise 8 percent from present levels to the end of 2016, with the European Central Bank's supportive monetary policy and the region's improving economic outlook seen helping riskier assets.

Reuters

Promoted Links

Business Newsletter

Read the leading stories from the world of Business.

Promoted Links

Also in Business