European Stock Futures Higher; Telecom Italia in Spotlight After Approach By Investing.com – Investing.com

European Stock Futures Higher; Telecom Italia in Spotlight After Approach By Investing.com – Investing.com

© Reuters.

By Peter Nurse 

Investing.com - European stock markets are expected to open higher Monday, starting a new week on a positive tone despite the return of Covid-induced restrictions to the continent.  

At 2 AM ET (0700 GMT), the contract in Germany traded 0.3% higher, in France climbed 0.4% and the contract in the U.K. rose 0.4%.

The major equity indices in Europe have shown strength of late, boosted by strong corporate earnings and helped by the European Central Bank retaining a dovish monetary policy stance.

This strength could be tested Monday following the return of Covid-19 restrictions, with Austria starting its fourth national lockdown since the start of the pandemic. 

The lockdown is meant to put a brake on infections before mandatory vaccinations kick in from February. That would be the first such policy in Europe, where governments have mostly kept inoculations voluntary.  

Neighboring Germany also refused to rule out a lockdown on Friday, while the likes of Ireland and the Netherlands have encouraged working from home in order to try and contain the spread of the virus.

Still, the reemergence of the virus is likely to add weight to European Central Bank President