European Equities in the Red Ahead of Central Bank Meetings

European equities were lower on Monday morning as a number of central banks' upcoming policy meetings came into focus and traders digested the implications of US President Trump's executive order which has temporarily restricted immigration from seven countries.

"After a week in office, Donald Trump is keeping investors on their toes already with his executive order over the weekend impacting the dollar," Naeem Aslam, chief market analyst at ThinkMarkets, said in a blog posting on Monday. "The data from the CFTC[Commodity Futures Trading Commission] shows that institutional investors have cut the net long positions on the dollar."

In economic news, the Bank of Japan and Bank of England have meetings scheduled for this week, with both broadly expected to stand pat on their existing monetary policies although the Bank of England's inflation report, due on Thursday, may provide clues as to the expected future impact of Britain's decision to leave the European Union (EU). Key economic growth data for the Eurozone is due to be published by the statistical office of the European Union, Eurostat, on Tuesday, and the Federal Reserve will commence its two-day policy meeting on Thursday.

Oil prices were marginally lower as the greenback edged higher. West Texas Intermediate crude oil, the main US oil benchmark, was 0.2% lower at $53.05 per barrel while Brent crude, the main international gauge, was down by 0.5% at $55.45 per barrel at the time of writing. As a dollar-denominated commodity, a higher US currency tends to make oil less affordable for international buyers.

In equities, Mediclinic International, a private health care provider, was 3.0% lower on London's FTSE 100 Index, followed by financial services provider Old Mutual, down by 2.8% and copper miner Anglo American, 2.3% lower. Tesco, a supermarket operator, was down by 2.2%.

On Frankfurt's DAX, Deutsche Bank was 2.1% lower, followed by electricity and gas supplier RWE, down by 1.5% and car-maker Volkswagen, 1.2% lower. Thyssenkrupp, an industrial steel-maker, was also 1.2% lower. And, on Paris' CAC-40, car-maker Peugeot was down by 1.9%, hotel chain Accor was 1.7% lower and Compagnie de Saint-Gobain, a producer of construction and high-performance materials and packaging, was down by 1.1%.

The pan-European Stoxx 600 Index was 0.89% lower, London's FTSE 100 Index was down by 0.86%, Frankfurt's DAX was down by 0.77% and Paris' CAC-40 was 1.03% lower, at the time of writing.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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