European markets have opened higher today, amid optimism over the coalition deal in Germany yesterday. Investors would watch economic data from the Eurozone, Germany and Italy due today to gauge the market direction. Trading volume is expected to remain subdued due to a US holiday.

Closer home, all eyes would be on the Bank of England’s latest assessment of the UK economy, in its financial stability report due later in the day and a speech by the Bank of England Governor Mark Carney.

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