Europe to open higher as central banks eyed – CNBC

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European equities are expected to open higher on Monday, following a positive lead set in Asia and looking ahead to a raft of central bank meetings and rate decisions this week.

The London FTSE 100 index is called to open 16 points higher at 6,155, the German DAX up 53 points at 9,844 and the French CAC up 10 points at 4,502, according to IG.

European markets look set to follow a positive trend set in Asia overnight where markets traded higher across the board on Monday, as traders began to take a more positive view of the European Central Bank’s (ECB) monetary policy decision last week.

Investors will be looking ahead to more central bank decisions this week with the Bank of Japan’s monetary policy meeting on Monday (its rate decision is due on Tuesday), the U.S.’ Federal Open Market Committee holding a two-day meeting starting on Tuesday (with an interest rates decision due Wednesday) and the Bank of England meeting on Thursday. Norway and Switzerland also hold monetary policy meetings this week.

Oil markets are also in focus for investors as prices have stabilized of late with analysts believing that the market is starting to recover. U.S. West Texas Intermediate (WTI) crude futures were trading at $38.44 per barrel at 0530 GMT but international benchmark Brent futures were up 11 cents at $40.50 a barrel. OPEC releases its monthly oil market report on Monday.

In political news, German Chancellor Angela Merkel’s CDU party suffered big defeats in German regional elections this weekend with many conservative voters punishing the CDU for its open refugee policy. The party’s losses come amid the dramatic rise in support for the anti-immigrant AfD party.

There are no major earnings on Monday.

-Saheli Roy Chaudhury contributed to this market report.

Europe to open higher as central banks eyed – CNBC