European stocks were seen opening the market in red on Monday as the markets continue to be affected by the US shutdown.
The European Euro Stoxx 50 edged 0.47% lower at 2,912.50 at the time of writing, while the French CAC 40 opened 0.57% lower to 4,140.50. At the same time Germany’s DAX declined 0.48% to 8,582.00 points, while the British FTSE dropped 0.27% to 6,436.30 points.
“Markets are set to become increasingly nervous over coming days suggesting an increase in risk aversion. Consequently pressure on risk assets is likely unless some sign of rapprochement is seen”, analysts from Credit Agricole BIB wrote in a note on Monday.
Earnings from some of the major airlines in Europe are expected to be released later in the day.
European Stocks – US Shutdown
The US government shutdown continuous to its sixth day as neither Republicans nor Democrats has not made any changes to their decision. Meanwhile the Republican Speaker of the house John Boehner said he will not allow a vote on raising the US debit limit without discussing about what is the main contributor to the country’s debt.
Lawmakers in the US have ten extra days to finalize the nation’s debt-limit issue before October 17.
Asian Stocks
Asian stocks were affected by the US government shutdown, extended to its sixth day as the region’s stock ended lower and the Japanese yen dragged the country’s stocks lower.
In China, Hong Kong’s benchmark Hang Seng dropped 0.56% to 23.008.00 at the time of writing, while the Japanese Nikkei 225 fell 1.22% lower at 13,853.32 points, regardless opening higher in its previous week’s 5% decline.
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