European shares are expected to open mostly higher Monday as investors focus on earnings and monitor an upcoming meeting between the United States and Russia.
In Asian trade, stocks were under pressure following new growth numbers in China. Beijing grew 6.7 percent in the second quarter of the year, a slight slowdown from the first quarter, but in line with analysts’ expectations, Reuters reported. There are concerns that upcoming quarters might be impacted by an escalation in a trade war with the United States.
Market players will keep a close eye on Helsinki, Finland, where President Donald Trump and President Vladimir Putin are meeting for their first ever summit. Meanwhile, Chinese officials will be hosting talks with the European Union, where new trade arrangements will be the main focus. Over the weekend, Trump labeled the European Union a “foe” when it comes to trade.
Trade and political concerns could weigh on Germany’s economic performance. Bundesbank Governor Jens Weidmann told the German government at a cabinet meeting that there are increasing risks of an economic slowdown due to trade and political events. The central bank cut its growth forecasts for this year last month, Reuters reported.
Investors are also following earnings amid a new reporting season. Telekom Austria and Ubisoft are among the companies reporting in Europe and, later in the session, Bank of America, Blackrock and Netflix will post their latest results.
In terms of data, there will be balance of trade figures out in the euro zone at 9 a.m. London time.
European markets seen higher ahead of earnings; Trump-Putin meeting in focus