European stocks are set to open higher Monday, looking to recover from their worst week since mid-June, with a global rise in coronavirus cases and political developments stateside on investors’ radar.
Britain’s FTSE 100 is seen around 64 points higher at 5,907, Germany’s DAX is set to climb by around 181 points to 12,650 and France’s CAC 40 is set to gain around 64 points to 4,794, according to IG data.
The pan-European Stoxx 600 index closed 3.7% lower for the week on Friday after a choppy session, with global markets roiled by a resurgence in coronavirus cases on the continent and further afield.
The U.S. has also seen a rise in daily cases ahead of Tuesday’s first presidential debate between President Donald Trump and Democratic challenger Joe Biden, with a Supreme Court fight also looming over Republican efforts to replace the late Justice Ruth Bader Ginsburg with conservative Amy Coney Barrett before the Nov. 3 election.
In Europe, Bank of England policymaker Silvana Tenreyro said in an interview published over the weekend that the central bank’s investigation into whether negative interest rates could help the British economic recovery has yielded “encouraging” results.
In corporate news, Reuters reported Sunday, citing sources, that Luxembourg steel giant ArcelorMittal is in talks to merge its U.S. assets with Cleveland-Cliffs, the largest producer of iron ore pellets in the U.S.
Daimler CEO Dieter Zetsche announced over the weekend that he would relinquish his role as chairman of the German automaker, with investors now calling for an independent figure to lead the supervisory board.
Commerzbank has named Manfred Knof, formerly head of German retail banking at Deutsche Bank, as its new CEO. Knof will replace Martin Zielke, who resigned in July along with chairman Stefan Schmittmann following a period of intense pressure from activist investors.
Siemens Energy is set to debut on the Frankfurt stock exchange Monday following its spinoff from tech giant Siemens.
European Central Bank President Christine Lagarde is scheduled to appear before the Committee on Economic and Monetary Affairs at 3:45 p.m. CEST.