London’s FTSE is seen opening 13 points lower at 5,912, Germany’s DAX up 10 points at 12,925. Meanwhile, France’s CAC 40 up 6 points at 4,946 and Italy’s FTSE MIB up 19 points at 19,332, according to IG.
A second wave of coronavirus cases in Europe remains a key focus for markets in the region.
This is as well as Brexit after discussions between the EU and UK appeared to come to an end last week with both sides telling the other to compromise.
Prime Minister Boris Johnson said last week that talks were “over” and the UK should “get ready” to trade with the EU from January 1 without a trade deal in place.
In signs there could be some room to maneuver still, trade talks will continue on Monday but not in person, as previously planned.
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2.16pm update: Pound rises against dollar compared to previous close
The pound at 2pm was 1.2994 dollars compared to 1.2930 dollars at the previous close.
The euro at 2pm was 0.9065 pounds compared to 0.9064 pounds at the previous close.
12.25pm update: Flybe planes might start taking off from British airports again early next year
Thyme Opco has bought Flybe’s remaining assets and plans to restart the airline, although on a smaller scale than before.
The new owners are linked to Cyrus Capital, which was part of a Virgin Atlantic-led rescue attempt for the airline last year.
The two companies teamed up with Stobart Group to try to keep the company afloat in a deal in February 2019.
It has now reached a deal alone with the administrators, which should see the purple planes taking to the air again.
“We are extremely excited about the opportunity to relaunch Flybe. The airline is not only a well-known UK brand, it was also the largest regional air carrier in the EU, so while we plan to start off smaller than before, we expect to create valuable airline industry jobs, restore essential regional connectivity in the UK and contribute to the recovery of a vital part of the country’s economy” said a spokesman for Thyme Opco.
Having struggled for years, Flybe was pushed into administration earlier this year as the Covid-19 pandemic destroyed large parts of the travel market. Even before the pandemic started, in January the airline had narrowly avoided administration.
The collapse of Europe’s largest regional airline put thousands of jobs on the line in March.
10.38am update: Pound soars as Brexit trade talks could potentially continue
The British pound extended gains and climbed above $1.30 on Monday as hopes grew that British and European negotiators might be able to salvage post-Brexit trade talks.
Britain said the door was still open if the European Union wanted to make some small concessions, but that unless the bloc backed down there would be a no-deal exit in 10 weeks.
EU and UK Brexit negotiators, Michel Barnier and David Frost, will discuss continuing trade talks over the phone around 1300 GMT on Monday after British Prime Minister Boris Johnson said there was no point in continuing talks.
“Weekend developments and headlines are spurring demand for the pound this morning as there is a growing perception the red lines may be closing in, raising the chances of a deal,” said Neil Jones, head of FX sales to financial institutions at Mizuho Bank.
Against a broadly steady US dollar, the pound strengthened 0.6 percent higher at $1.3006. Against the euro , the pound gained 0.5 percent to 90.33 pence.
8.54am update: The FTSE-100 index opened at 5919.58
7.45am update: Asian markets rise on vaccine hopes
Asian markets headed towards a two year peak on this morning, due to hopes of a US fiscal package and expectations of a coronavirus vaccine by the end of this year, though gains were held back by weaker-than-expected Chinese economic data.
In early European trades, the pan-region Euro Stoxx 50 futures added 0.25 percent, German DAX futures were slightly higher while London’s FTSE futures were down 0.07 percent.
MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 0.5 percent for its second straight day of gains, paring back slightly following third-quarter gross domestic product (GDP) data from China.
The index has risen in eight of the last 10 sessions amid a rally in risk assets buoyed by hopes of a coronavirus vaccine and expectations of a so-called “blue wave”, which would see the Democrats claim victory in November’s elections.
Chinese shares started higher but slipped into negative territory in afternoon trading after China’s third-quarter GDP data rose 4.9%, missing expectations for a 5.2 percent growth.
Published at Mon, 19 Oct 2020 05:43:00 +0000