European bourses are set to open lower on Monday morning after preliminary coalition talks in Germany collapsed.

The FTSE 100 is seen lower by 11 points at 7,369; the German DAX is expected to open 81 points lower at 12,911 and the CAC 40 is seen down by 25 points at 5,288, according to IG.

In Asia, equities were mostly lower on growing doubts over U.S. plans to update the tax system.

The euro was trading 0.5 percent lower against the dollar and 0.58 percent lower against the yen at about 4:30 a.m. London time. The currency was under pressure following news that Chancellor Angela Merkel failed to reach an agreement with two other political parties to form a new government. The FDP pulled out of the talks citing irreconcilable differences. Merkel is now to consult with the German president on what to do next, but it’s possible that new elections could be called.

In corporate news, the Swiss private bank Julius Baer is due to report interim results on Monday morning and William Hill in the U.K. will release its latest quarterly figures.

UBS, Royal Bank of Scotland, JPMorgan Chase, Citigroup, Barclays, HSBC and two other banks are reportedly willing to negotiate settlements with European regulators, likely to cost billions of euros combined, after a four-year probe into rigging in the forex market, the Financial Times reported.

Meanwhile in the U.K., Finance Minister Philip Hammond, who is due to present the next budget Wednesday, promised to advance housebuilding in the country.