European stock futures edge lower; caution as U.S. debt talks continue

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European stock futures edge lower; caution as U.S. debt talks continue
Credit: © Reuters.

Investing.com - European stock markets are expected to open in a cautious manner Monday, as negotiations surrounding the potential raising of the U.S. debt ceiling continue.

At 02:00 ET (06:00 GMT), the DAX futures contract in Germany traded 0.1% lower, CAC 40 futures in France dropped 0.1% and the FTSE 100 futures contract in the U.K. fell 0.1%.

Europe's macro calendar is fairly light today, with May eurozone consumer confidence data and speeches from European Central Bank officials Luis de Guindos and Philip Lane the main highlights.

With this in mind, activity is likely to be limited as investors await more news from Washington with negotiations to avoid a U.S. default, which would have a disastrous impact on the global economy, set to continue.

President Joe Biden is due to meet House Republican Speaker Kevin McCarthy later Monday in an attempt to get discussions back on track after Republican negotiators unexpectedly walked out of debt ceiling talks on Friday.

U.S. Treasury Secretary Janet Yellen repeated over the weekend that June 1 remains a "hard deadline" for raising the federal debt limit, and hard choices would have to be made if Congress failed to raise the $31.4 trillion debt ceiling before this date.

Some positive news emerged from the G7 summit in Japan over the weekend, as Biden said he expects relations between the U.S. and Beijing to improve “very shortly.” 

This could see foreign investors returning to China, helping a major export market as it struggles with a post-COVID economic rebound. 

Back in Europe, data showed that foreign investment in Germany remained stable in 2022 despite the difficult economic situation, according to the country's economic development agency, Germany Trade & Invest, Monday.

In corporate news, Ryanair (IR: RYA ) posted a near-record profit in the year to end-March and the Irish airline, Europe's largest by passenger numbers, said it was cautiously optimistic that profits would rise modestly in the next 12 months, with summer demand notably robust.

Oil prices retreated Monday, handing back some of last week’s gains amid caution over the ongoing U.S. debt ceiling talks.

By 02:00 ET, U.S. crude futures traded 0.8% lower at $71.09 a barrel, while the Brent contract dropped 0.8% to $74.95. 

Both contracts rose around 2% last week, ending four straight weeks of heavy declines on concerns of slowing growth in China, the world’s largest oil importer, as well as the potential economic repercussions of a U.S. default.

Additionally, gold futures fell 0.3% to $1,976.05/oz, while EUR/USD traded 0.1% higher at 1.0814.

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  • Patrick Lekholoane @Patrick Lekholoane
    gold might go bullish on Wednesday to $2000
    Like 0
  • Sabonttu Mattu @Sabonttu Mattu
    how,many,dollar,or,bessnes,in this,applcation
    Like 0