European Stocks Seen Weak On Monday

Stock markets in Europe are expected to open on a muted note on Monday amidst positive and constructive talks between the U.S. and Iran at Switzerland. While the easing crude oil prices have improved global risk appetite, fears of monetary tightening by the Fed have resulted in a spike in global bond yields, potentially limiting the stock market upside on Monday. The current political situation in the U.K. is also expected to weigh on sentiment.

Wall Street had closed on an emphatically positive note on Thursday, buoyed by optimism over the U.S.-Iran deal as well as strength in the tech sector that more than offset concerns over a hawkish Federal Reserve. The tech-heavy Nasdaq Composite surged 1.9 percent to close trading at 26,517.93. The S&P 500 rallied 1.1 percent to finish trading at 7,500.58. The Dow Jones Industrial Average also added 0.14 percent to finish trading at 51,564.70. Wall Street was closed for a holiday on Friday.