European Stocks Called Higher as Irma Weakens After Florida Hammering

European and U.S. stocks are looking at solid opening gains Monday as investors hope Hurricane Irma's damage falls shy of early estimates.
By Martin Baccardax ,

European stocks are set to open higher Monday as investors return to global equity markets amid a smaller-than-expected economic hit from Hurricane Irma in the United States and an absence of military tensions in the Asia region.

Britain's FTSE 100 is priced to rise around 0.4% at the opening bell, according to financial bookmakers IG, as the benchmark gets support from rising global crude prices following reports that Saudi Arabia is looking to extend OPEC production cuts beyond March 2018. Benchmarks in Germany and France are also looking at solid opening gains of between 0.5% and 0.6% as investors look to cheaper equities amid a slipback in the European single currency. 

The U.S. dollar index, a measure of the greenback's strength against a basket of six global currencies, was marked 0.16% higher at 91.50 at the start of European trading, rising some its near 2.5 years lows after a quiet weekend of military activity in Asia, where North Korean leaders focused on 69th anniversary celebrations instead of the testing of new missiles.

Sentiment was also boosted by insurance industry estimates linked to the damage brought by Hurricane Irma as it makes its way up the Florida peninsula and into Georgia and the Carolinas. While images of the storm's devastation in the Caribbean and the southern most areas of the Florida Keys are indeed stark, Irma's slowing speeds have limited its impact in Miami and elsewhere, suggesting its overall economic costs could fall well shy of the early $250 billion estimate. 

The moves helped lower the value of the yen, which has risen sharply since the frequency of North Korea's tests has accelerated, and pushed the benchmark Nikkei 225 1.4% higher into the close of trading. The region wide MSCI Asia ex-Japan index, the broadest measure of share prices, was seen 0.11% higher at the start of European trading.

Global oil prices were active this morning, as well, with West Texas Intermediate crude futures for October delivery rising 0.73% and Brent contracts for November gaining 0.4% amid reports that Saudi Arabia's oil minister has had talks with OPEC colleagues in Venezuela and   Kazakhstan.

U.S. equity markets are looking solid, as well, with S&P 500 E-mini futures rising 0.45% while similar contracts for the Dow Jones Industrial Average were marked 0.48% higher.

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