Stock bourses, as of 7:40 am London time, are pointing to a lower open. Investors are digesting the news of snap elections in the United Kingdom as well as upcoming economic data and corporate earnings reports.
Futures in London are down 38 points. Futures in Germany are down thirty five points and futures in France are currently 12 points lower.
The stage in Europe is set for another general election this summer. British Prime Minister Theresa May called a snap election for June 8. The Conservative leader wants to strengthen her parliamentary majority before reaching a Brexit deal with the European Union. After the news the Sterling pound surged to a six-month high. The news helps expectations that the election could lead to a more market-friendly exit from the Eurozone and not a hard Brexit.
Europe to focus also on Data and Earnings
In other news, Europe will also get a slew of corporate earnings from Heineken, Burberry, Rio Tinto and AB Foods. Later in the trading day, US lender Morgan Stanley will report before the opening bell. Goldman Sachs missed expectations yesterday.
As far as the economic calendar is concerned, the Eurozone will release the final March inflation data at 10:00 am London time. Later in the, the International Monetary Fund is releasing the main chapters of its Global Financial Stability Report.
In other news, the German government has said, according to a report in the Funke Mediengruppe newspaper, that an interest rate hike by the European Central Bank would be in-line with the region’s economic recovery and would help with Germany’s export surplus.