Europe stocks head for lower open as inflation rattles global markets

LONDON — European stocks are expected to open lower on Monday, continuing a negative trend that set in among global markets last week.

The UK’s FTSE index is seen opening 59 points lower at 7,350, Germany’s DAX 67 points lower at 6,206, France’s CAC 40 down 164 points at 13,545 and Italy’s FTSE MIB 172 points lower at 22.925, according to rto data from IG.

The lower open anticipated for European markets comes after regional stocks retreated at the end of the last trading week after a rout in US markets, with Wall Street posting its worst day since 2020 last Thursday.

US stock futures fell on Sunday evening too as traders looked for the market to find its footing after the dramatic week of trading.

Last week, the Nasdaq Composite lost 1.54%, while the S&P 500 and Dow dropped 0.21% and 0.24%, respectively. It was the sixth straight losing week for the Dow, and the fifth straight for the other two major indexes.

Shares in Asia-Pacific fell on Monday as investors watched for market reaction to Chinese trade data that came in better than expected.

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Investors are also be keeping an eye on the war in Ukraine as dozens are feared dead after a school in the Luhansk region in eastern Ukraine was hit by Russian shelling. Luhansk is one of the two regions that make up the Donbas, where Russian troops are now largely concentrating their attacks.

Russia is also under scrutiny on Monday, as it gears up for “Victory Day” — a holiday commemorating the Soviet Union’s defeat of Nazi Germany in World War II.

Strategists have said President Vladimir Putin could use the occasion, marked by massive military parades in Moscow, to announce a victory in Ukraine, or to escalate the conflict.

US first lady Jill Biden made a surprise visit to Ukraine on Sunday. The US and Group of Seven countries announced that they would increase short-term financial support for Ukraine as the war with Russia nears the three-month mark.

Earnings come from BioNTech on Monday. There are no major data releases.

— CNBC’s Jesse Pound contributed to this market report.

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