European stocks to open lower dragged by China, EZ CPI eyed

FXStreet (Mumbai) – European indices are expected to open the week on a weaker note, tracking their Asian and Wall Street counterparts lower as the selling mood returned amid worries over Chinese state-support waning. Markets in the UK will be closed on Monday due to the Summer Bank Holiday.

Asian stocks market snapped its 3-day winning streak over the past week and fell sharply lower dragged by Chinese equities crash after the Chinese government decided to abandon further support to the country’s stock markets. The benchmark index, the Shanghai Composite (SSEC) dived nearly 3% on Monday.

Before the market open, futures for Germany’s DAX 30 index fell 0.81% to 10,188.30, while French CAC 40 futures lost 0.99% to 4,627.80, while futures for the pan-European Euro Stoxx 50 index decreased 0.70% to 3,256.00.

Looking ahead, markets will digest the latest German retail sales data which topped estimates while the euro zone will publish its August inflation data estimate later in the session, with inflation expected to register a 0.1% increase y/y. In July, consumer price growth in the euro zone reached a 0.2% annual level.

European indices are expected to open the week on a weaker note, tracking their Asian and Wall Street counterparts lower as the selling mood returned amid worries over Chinese state-support waning. Markets in the UK will be closed on Monday due to the Summer Bank Holiday.

(Market News Provided by FXstreet)