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European Shares To Open Lower as Oil Falls

CNBC.com
Monday, 28 Mar 2011 | 2:34 AM ET

European stocks were indicated to open lower Monday, after a defeat of Angela Merkel's conservatives in a regional stronghold and with oil prices slipping.

A trader sits in front of a board displaying Germany's share index DAX at the stock exchange in Frankfurt/Munich, western Germany.
Martin Oeser | AFP | Getty Images
A trader sits in front of a board displaying Germany's share index DAX at the stock exchange in Frankfurt/Munich, western Germany.

Early polls in the German state of Baden-Wuerttemberg showed the Greens heading for their first state premiership, defeating Merkel's party.

Oil prices were lower as rebels regained two key oil complexes.

European shares closed higher Friday, lifted by gains in the United States.

European leaders failed to make significant progress at a summit last week. They wrapped up a heavily-anticipated summit on Friday by giving themselves until June to finalize an increase in their temporary bailout facility, failing to deliver the broad package they had promised.

Markets took the failure fairly calmly, but Portugal, the main country under pressure at the moment, saw its debt costs rise and was widely assumed to be heading towards a bailout similar to those given to Greece and Ireland.

Economic focus in the coming week will be on critical US, euro zone and Japanese employment reports, while oil prices will also stay firmly in focus amid developments in the Middle East.

UK house price data is due Monday. No other macroeconomic indicators are set for release.

Contact Europe: Economy

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