Title: European Stock Futures Lower; Ukraine Peace Talks in Focus
Mar 28, 2022 01:59AM ET
European stock markets are forecast to open on a cautious note on Monday as investors keep a close eye on unfolding developments in the war between Ukraine and Russia, while peace talks are due to be held in Turkey this week.
At 2 am ET, Germany's DAX futures were down 0.4%, France's CAC 40 futures were lower by 0.4%, and the UK's FTSE 100 futures were lower by 0.3%.
The war in Ukraine is now in its second month and has led to the destruction of several cities, triggered a severe humanitarian crisis, and displaced an estimated 10 million people, almost a quarter of the Ukrainian population.
Yet Russia has failed to capture a major Ukrainian city and risks being drawn into a guerrilla war, something Moscow is keen to avoid given its earlier troubles in Afghanistan.
New face-to-face peace discussions between Russia and Ukraine are due to take place in Turkey this week. Ukrainian President Volodymyr Zelensky said in a video address to his country on Sunday that his government would prioritize Ukraine's "territorial integrity", but hopes are rising that a compromise on the status of the eastern Donbas region could be reached as part of a peace deal.
Meanwhile, the US quickly backtracked on President Joe Biden's comments that Vladimir Putin "can not remain in power," and Foreign Minister Antony Blinken made clear that his country has no strategy for regime change.
There is little economic data on the agenda in Europe on Monday. The main focus is on the monthly US labor market report, which will be released at the end of the week and could tell the markets whether the Fed's interest rate hike plan is realistic.