European markets head for lower open amid global market caution
- London's FTSE is seen opening 43 points lower at 6,600, Germany's DAX 39 points lower at 13,968, France's CAC 40 down 18 points at 5,566 and Italy's FTSE MIB 20 points lower at 23,065, according to IG.
LONDON — European stocks are expected to open lower Monday amid cautious trade in global markets.
London's FTSE is seen opening 43 points lower at 6,600, Germany's DAX 39 points lower at 13,968, France's CAC 40 down 18 points at 5,566 and Italy's FTSE MIB 20 points lower at 23,065, according to IG.
European markets look set for a lackluster open, following a trend set in the U.S. and Asia; U.S. stock futures held steady in overnight trading on Sunday after the S&P 500 and the Nasdaq Composite snapped a two-week winning streak with a loss of 0.7% and 1.6%, respectively, last week.
Some equity investors have grown concerned about rapidly rising bond yields in recent weeks as they could hurt high-growth companies reliant on easy borrowing, and diminish the relative appeal of stocks. Rising bond yields reflect market confidence that an economic recovery is near, following the coronavirus pandemic.
The 10-year Treasury yield jumped 14 basis points last week to 1.34%, near its highest level since February 2020. So far this month, the benchmark rate has moved up 25 basis points.
Stocks in Asia-Pacific were also mixed in Monday trade as China left its benchmark lending rate unchanged over the weekend.
Developments surrounding the pandemic and vaccine rollout remain in focus. The U.K. is set to detail later on Monday how it plans to lift lockdown measures gradually in the coming months, as its vaccination rollout maintains its good pace.
Meanwhile, the White House said Sunday that it expects to ship out millions of delayed coronavirus vaccine doses this week after a sweeping winter storm disrupted logistics.
Tedros Adhanom Ghebreyesus, director-general of the World Health Organization, is due to give a press conference Monday about the latest developments on the pandemic.
On the data front, Germany's Ifo Institute releases its February survey on the business climate in the country. There are no major earnings releases.
– CNBC's Yun Li contributed to this market report.
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