European stock markets are seen opening slightly lower to unchanged as investors focus on developments in Germany following the re-election of Chancellor Angela Merkel. Despite Merkel winning her third term at the helm of Europe’s biggest economy, the votes came in slightly short of an overall victory. It will now be up to Merkel to convince leftist rivals to join a coalition government. The Euro initially traded higher as investors were given a sigh of relief after Merkel’s win who will likely keep German policy unchanged.
Asian stock markets traded slightly lower overnight despite better than expected Chinese factory orders which expanded for a second month in September. The preliminary HSBC Flash Manufacturing PMI rose to 51.2 after jumping the most since 2010 to 50.1 in August.
Crude remained steady overnight as developments in Syria took effect easing concerns over supply risks. Russia’s Foreign Minister said Sunday they are ready to send a limited number of troops and observers to Syria to review chemical-weapon stockpiles.