The broad-based major European indices closed lower in Monday’s trading session, as falling mining stocks and financial companies pushed the markets into negative territory.
In economic news, U.K. Prime Minister Theresa May will announce a new plan to boost the post-Brexit economy, reports the BBC. A green paper will outline ways the government can provide support to businesses by addressing regulatory barriers, agreeing to trade deals, and helping establish institutions that encourage innovation and skills development.
The recent slump in the pound should “prompt a significant readjustment of the U.K. economy away from consumer spending towards exports,” according to the EY ITEM Club, a U.K.-based economic forecasting group. However, it added that growth is also likely to be slower.
According to the report, this rebalancing of economic activity will be accompanied by three years of relatively slow growth. The EY ITEM Club expects GDP growth to reach 1.3% in 2017, up from the 0.8% it predicted in October’s forecast, but down from an expected 2% in 2016, and just 1% in 2018.