FX.co ★ European Stocks Set for Cautious Open

European equity markets were poised for a muted open on Monday, as mounting concerns over political instability and a worsening fiscal outlook across the region weighed on investor sentiment. In Spain, government officials are reportedly preparing for an early election after a damaging parliamentary defeat last week. This has compounded worries about rising debt levels and political uncertainty in France, where opposition parties remain unwilling to compromise with President Emmanuel Macron’s outgoing administration ahead of next year’s election. At the same time, softer-than-expected US employment data released on Friday has eased pressure on the Federal Reserve to deliver further interest-rate hikes, providing some support to equities. Oil prices also declined, as indications of rising global supply overshadowed persistent geopolitical risks in the Middle East. In premarket trading, Euro Stoxx 50 futures were hovering near the flatline.