European stocks set for higher open in attempt to rebound from losses

European stocks are set to open higher Monday as markets look to recover from consecutive losses fueled by the tech sector at the end of last week.

Britain’s FTSE 100 is seen around 52 points higher at 5,851, Germany’s DAX is set to climb around 79 points to 12,932 and France’s CAC 40 is expected to open around 31 points higher at 4,996, according to IG data.

A gauge of global stocks last week notched its biggest weekly percentage decline in almost three months as a downturn for U.S. tech megastocks, which had fueled much of the country’s equity market recovery, weighed on sentiment.

Stocks in Asia Pacific were mixed during Monday afternoon trade, with investors monitoring further tensions between Washington and Beijing after Reuters reported that the Trump administration is considering blacklisting Semiconductor Manufacturing International Corporation (SMIC), China’s largest chipmaker.

China’s dollar-denominated exports beat expectations in August to climb 9.5% from a year ago, while imports declined 2.1% in the same period.

Stateside, stock futures are indicating a broadly muted open on Wall Street, but futures on the Nasdaq are pointing lower, signaling further tech losses ahead.

Back in Europe, U.K. Prime Minister Boris Johnson is expected to say Monday that Britain and the European Union should “move on” if no free trade deal can be agreed before Oct. 15. The eighth round of Brexit negotiations recommences this week.

Germany on Sunday warned that a lack of Russian cooperation with its investigation into the poisoning of opposition leader Alexei Navalny could force Europe’s largest economy to rethink its Nord Stream 2 gas pipeline project between the two countries.

In corporate news, a coronavirus vaccine being developed by France’s Sanofi and Britain’s GlaxoSmithKline will likely cost less than 10 euros ($11.80), the president of Sanofi France said Saturday.

Swiss newspaper SonntagsZeitung reported on Sunday that further evidence has yet to be disclosed of additional spying incidents at Credit Suisse under the tenure of former CEO Tidjane Thiam. The bank is currently subject to enforcement action by Swiss regulator FINMA over the spying scandal which erupted late last year.

On the data front, German industrial output and production figures for July are expected before the bell.

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