European Markets Seen Higher Despite Brexit

European futures are pointing to a slightly higher open for the European equity indices on Monday. Traders are monitoring confusing Brexit news as well as trade headlines between the United States and China.

Last week, Prime Minister Boris Johnson, of the United Kingdom, was forced to ask the European Union for an extension. The British Parliament blocked his agreement with the European Union to exit on October 31 with a trade deal in place.

He then called for elections to be held in December to consolidate his mandate. Then French President Emmanuel Macron, said last week that an extension is not warranted at this time. The European Union Council then said that they were considering a three month flexible extension for the United Kingdom.

Looking at futures from Bloomberg data, the British FTSE 100 is set to open six points lower. The European benchmark in France, the CAC 40 is set to open 38 points higher and in Germany the European DAX is looking at opening eight points higher.

European Traders Digest Trade News and Look towards the FOMC this Week

Looking at news surrounding the ongoing trade talks between China and the United States, a U.S. Trade Representative said that there has been a lot of “headway on specific issues and the two sides are close to finalizing some sections of the agreement.”

Over the weekend, China’s Commerce Ministry said that they are addressing core issues with the U.S. The Commerce Ministry also said that the United States will import cooked poultry and China will lift a ban on poultry from the United States.

Traders are now looking towards to this week’s Federal Open Market Committee (FOMC). The FOMC is scheduled to meet on October 30-31. The FOMC, the monetary policy arm of the U.S. Federal Reserve, is expected to cut their Fed Funds rate by 25 basis points.