Proactive Investors - European equity markets are headed for a lower open on Monday as investors remained cautious while awaiting fresh market catalysts.
Markets also look forward to fresh guidance from European Central Bank officials this week, after the ECB delivered another 25-basis point rate hike on Thursday and signalled further tightening.
The Bank of England is expected to raise interest rates as well at this week’s policy meeting. DAX and Stoxx 600 futures fell about 0.5% in premarket trade, while FTSE 100 futures lost 0.15%.
Eyes on inflation for FTSE 100
The FTSE 100 enjoyed its best week since April last week, but London's blue chips are expected to open 35 points lower to 7,607.
Much of the attention this week in London will be focused on inflation, with average wages up by 7.2% in the three months to April, with the Bank of England allowing it to spiral.
Over the weekend, former governor Mark Carney said that Brexit was partly to blame for the UK’s high inflation rate.
The latest inflation rate will be released on Wednesday and is forecasted to fall to 8.4% from 8.7%, with the BoE’s monetary decision out on Thursday.
On today’s docket, there is a dearth of economic data or corporate news, although the latest FTSE reshuffle takes place today.
British Land has been relegated from the FTSE 100, replaced by engineer IMI (LON:IMI).