Europe shares are expected to follow their Asia counterparts lower on Monday as concerns over global growth and weaker economic data continue to hit risk sentiment.
The FTSE is expected to open 58 points lower at 6,281, the German DAX down 69 points at 8,719 and the French CAC down 43 points at 4,030. Asian shares also started the week lower on Monday, adding to last week’s tumble despite strong Chinese data that showed a 15.3 percent on-year surge in exports in September. Meanwhile in the euro zone, fears over the region’s growth prospects continue to rattle markets, which posted significant falls last week.
On Friday, ratings agency Standard and Poor’s downgraded the France’s outlook from stable to negative citing the government’s “receding fiscal space” and a stagnating economy as reasons for its revision. The agency also believes France is unlikely to hit its 2017 budget target of 3 percent.