European markets head for lower open after surge for right-wing parties in EU election

Holly Ellyatt@HOLLYELLYATT

LONDON — European stocks are expected to open lower Monday as traders react to initial results from the EU Parliament elections which suggest far-right parties have surged in popularity.

The U.K.’s FTSE index is seen 57 points lower at 8,193, Germany’s DAX 45 points lower at 18,507, France’s CAC 40 down 45 points at 7,952 and Italy’s FTSE MIB 60 points lower at 34,629, according to IG.

Regional markets will be focused on the results of EU parliamentary elections, which took place over the last few days. Initial results show populist, far-right parties could have a bigger hand in European policymaking over the next five years.

The EU election drama was rounded off Sunday evening when French President Emmanuel Macron called snap parliamentary elections later this month after suffering a heavy defeat in the EU vote.

More Issue

-The right-wing surge in EU Parliament could have implications for Europe and beyond

-Far right makes strong gains in EU elections as liberals and Greens lose seats, projections show

-France’s Macron calls for snap election after losing big to the far right in EU vote

Regional investors will also be looking ahead to the next U.S. inflation data on Wednesday, as well as the next meeting of the U.S. Federal Reserve. Both come after a stronger-than-expected U.S. jobs report last Friday revealed hiring and wage growth picked up in May.

That adds to the narrative the Fed doesn’t have to rush to lower interest rates. Traders don’t expect the Federal Open Market Committee to cut rates at its meeting this week or the next meeting in July.

Overnight, Asia-Pacific markets were mixed, with a few markets are closed for a holiday Monday, including Australia, mainland China, Hong Kong and Taiwan. Meanwhile, U.S. stock futures were little changed Sunday night after a winning week.

Source : cnbc