BRUSSELS (dpa-AFX) - European markets look headed for a weak start on Monday, extending losses from previous sessions, amid lingering worries about global growth due to ongoing trade dispute between the U.S. and China.
Economic data from across Europe, news on Brexit and U.S.-China and U.S.-Mexico trade issues are expected to provide direction for European stocks on Monday.
Amid rising fears of a global recession after the U.S. announced tariffs on Mexican goods, European stocks tumbled on Friday and markets in Asia are mostly lower on Monday.
Last week, fears about a global recession increased after Trump announced a 5% tariff on all imports from Mexico and threatened that the rate would gradually increase if Mexico does not make efforts to stop illegal immigration of people across the border and into the U.S.
Already, U.S.-China trade spat is hurting the global economy heavily and the latest move by the U.S. has raised fears of a further slowdown in growth.
Meanwhile, according to reports, both China and Mexico have expressed willingness to negotiate with Washington over escalating trade issues even as the U.S. continues to defend its use of tariffs to gain concessions from its major trading partners.
In Brexit-related news, U.S. President Donald Trump on Sunday encouraged the United Kingdom to 'walk away' from any negotiations with the European Union in the event of the country failing to secure a favorable Brexit deal.
'If you don't get the deal you want, if you don't get a fair deal, then you walk away,' Trump is quoted as saying in an interview by The Sunday Times.
Trump also said that his administration would 'work on it very, very quickly.'
'I'd go all out,' Trump told The Times. 'It would be a great advantage for UK. One of the advantages of Brexit is the fact that you can deal with the number one country by far, we're the number one by far in terms of every metric in terms of an economy.'
Infineon Technologies will be in focus after the company said it will acquire Cypress Semiconductor Corp. for an enterprise value of 9 billion euros. The price values a Cypress share at $23.85, a premium of 46% to Cypress's unaffected 30-day volume-weighted average price during the period from April 15 to May 28.
French food major Danone has agreed to sell its U.S dairy business Stonyfield to Lactalis for $875 million.
At 3.00 am ET, PMI survey results are due from Norway, Poland and Turkey. Turkey's consumer prices figures are also due around the same time.
A little later, IHS Markit releases Spain's manufacturing PMI figures and Statistics Sweden will release retail sales data for April.
At 4.00 AM ET, Eurozone final manufacturing PMI results are due. The flash score was 47.7. Later, at 4.30 AM ET, IHS Markit releases UK CIPS/Markit factory PMI for May. The factory PMI is expected to drop to 52.0 from 53.1 in April.
On Friday, The pan European Stoxx 600 ended 0.81% down. Germany ended sharply lower with its benchmark DAX losing 1.47%. The U.K.'s FTSE 100 and France's CAC 40 shed 0.78% and 0.79%, respectively. Switzerland's SMI edged down by 0.19%.
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