European stocks are expected to open lower Monday after a hammering for the U.S. dollar to a four-month low in overnight Asia trading following President Donald Trump's failure to push through healthcare reform legislation last week.
Britain's FTSE 100 is expected to fall more than 40 points at the opening bell, according to financial bookmakers IG, as investors keep an eye on a rising pound and adjust the impact on stocks that generally earn their revenues outside of the United Kingdom. Germany's DAX index is called 46 points lower while spreadbetters are expecting a 23 point slip for the CAC-40 in Paris.
The dollar index, a measure of the greenback's strength against a basket of six global currencies, fell to 99.04 by 06:45 GMT, the lowest level since the immediate aftermath of Trump's election in early November. The move boosted currencies around the region, including and especially the yen, which rose to 110.38 amid 'safe haven' flows into the Japanese currency. That held down any chance for the Nikkei 225 to eat in to last week's declines, with the benchmark falling 1.5% by the close of trading to 18,985.59 points.
Oil prices were also active overnight, with benchmark WTI futures for May delivery falling nearly 1% to $47.49 per barrel from Friday's closing price while Brent contracts for the same month were marked 0.8% lower at $50.80 each.
U.S. equity futures currently suggest an extension of Friday's late-session declines on Wall Street, with the Dow Jones Industrial Average poised to fall 88 points at the opening bell, the S&P 500 13.75 points and the Nasdaq 28.5 points.