European Stocks Seen Weak On Monday

(RTTNews) - Stock markets in Europe are expected to open on a muted note on Monday amidst positive and constructive talks between the U.S. and Iran at Switzerland. While the easing crude oil prices have improved global risk appetite, fears of monetary tightening by the Fed have resulted in a spike in global bond yields, potentially limiting the stock market upside on Monday. The current political situation in the U.K. is also expected to weigh on sentiment.

Wall Street had closed on an emphatically positive note on Thursday, buoyed by optimism over the U.S.-Iran deal as well as strength in the tech sector that more than offset concerns over a hawkish Federal Reserve. The tech-heavy Nasdaq Composite surged 1.9 percent to close trading at 26,517.93. The S&P 500 rallied 1.1 percent to finish trading at 7,500.58. The Dow Jones Industrial Average also added 0.14 percent to finish trading at 51,564.70. Wall Street was closed for a holiday on Friday.

Major European markets had however finished trading on a mostly negative note on Friday amid mixed signals surrounding the U.S.-Iran negotiations as well as renewed tensions between Israel and Lebanon. France's CAC 40 lost 0.55 percent to close at 8,421.14. The pan-European Stoxx-50 slipped 0.48 percent to finish trading at 6,293.13. U.K.'s FTSE 100 declined 0.35 percent to finish trading at 10,363.27. Germany's DAX dropped 0.16 percent to end Friday's trading at 24,985.82. Switzerland's SMI however edged up 0.06 percent to close trading at 13,774.02.

Current indications from the European stock futures indicate a mixed sentiment. The FTSE 100 Futures (Sep) is trading 0.39 percent higher. The pan-European Stoxx 50 Futures (Sep) is trading 0.11 percent lower. The CAC 40 Futures (Jul) is trading 0.06 percent lower. The DAX Futures (Sep) is trading 0.03 percent higher. The SMI Futures (Sep) is trading 0.17 percent higher on Monday.

American stock futures are trading in mildly negative territory. The US 30 (DJIA) is trading 0.08 percent lower, whereas the US500 (S&P 500) is trading 0.21 percent below the flatline.

Asian stock markets are trading on a mixed note, amidst the progress in the U.S.-Iran talks at Switzerland. Japan's Nikkei 225 has rallied 1.9 percent. China's Shanghai Composite has gained more than 1 percent. India's Nifty 50 is trading 0.55 percent above the flatline. South Korea's KOSPI has added 0.28 percent. Australia's S&P ASX 200 has edged down 0.07 percent. Hong Kong's Hang Seng has slipped 0.84 percent. DJ New Zealand has dropped 0.88 percent.

The Fed's hawkish monetary policy outlook has supported the dollar. Despite progress in talks between the U.S. and Iran, the greenback has strengthened. The Dollar Index, a measure of the U.S. dollar's strength relative to six currencies, is currently trading at 100.88, edging up 0.03 percent from 100.85 at the previous close.

The EUR/USD pair has slipped 0.13 percent to trade at 1.1454 whereas the GBP/USD pair has dropped 0.19 percent to trade at 1.3209. The USD/CHF pair has rallied 0.17 percent to trade at 0.8085. The EUR/GBP pair is trading 0.06 percent higher at 0.8672. With the yen weakening in the backdrop of fading safe haven demand, the EUR/JPY pair has added 0.11 percent to 185.21, and the GBP/JPY pair has edged up 0.05 percent to 213.58.

The progress in the U.S.-Iran talks has boosted prices of the yellow metal. Gold futures for August settlement have jumped 0.94 percent from the previous closing level of $4,172.90. It is currently trading at $4,212.17.

Both the crude oil benchmarks have retreated in the backdrop of progress in U.S.-Iran talks. Brent Crude Futures for September settlement is trading at $78.53, around 1.9 percent lower than $80.05 at the previous close. WTI Crude Futures for August settlement is currently at $75.15, more than 0.92 percent lower than $75.85 at the previous close.

Among economic data releases, flash consumer confidence readings for June would be due from Euro Area.

Major updates to earnings due from the region on Monday include 3I Infrastructure, Finnair Oyj, Oeneo and NextEnergy Solar Fund.