Europe Off to Negative Start

European stock markets fell Monday, extending pre-weekend losses, as major takeover activity within the oil and car sectors failing to lift overall sentiment.European markets opened shortly after French oil giant Total said it would buy Maersk Oil, a unit of the Danish shipping giant A.P. Moller-Maersk, for $7.45 billion (6.35 billion euros).Traders in Europe reacted also to news that Tokyo’s benchmark stock index fell to the lowest level in almost four months, hit by lingering concerns about US President Donald Trump’s stalled economic agenda.Such worries had hurt global stocks on Friday, with valuations pressured further by the terror attacks in Barcelona as investors sought haven investments such as the yen and gold.

“Geopolitical risk could rear its ugly head again this week as the US and South Korea begin planned military exercises on Monday, just as tensions between the North and these two countries appear to have calmed,” said Oanda senior market analyst Craig Erlam.

“Should North Korea respond in kind, then we could see a repeat of the safe haven rush.”

Source: European stocks extend losses

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.