European markets opened with a mixed performance this morning as traders weighed economic data and corporate earnings ahead of key releases later in the day. The FTSE 100 edged slightly higher, supported by gains in the energy sector, while the DAX and CAC 40 saw modest declines amid lingering uncertainty over interest rate cuts.
European session highlights
The FTSE 100 started the day up 0.2%, buoyed by rising oil prices lifting heavyweight energy stocks. Meanwhile, Germany’s DAX dipped 0.1% as automotive and industrial stocks struggled, and France’s CAC 40 slipped 0.2% amid profit-taking in luxury goods shares.
Investors remained cautious ahead of the European Central Bank’s (ECB) latest meeting minutes, due later this week, which could provide clues on the timing of potential rate cuts. Inflation concerns persist, though recent data has shown signs of easing price pressures, raising hopes for monetary policy easing in the coming months.
US markets in focus
Wall Street is set for a cautious open as traders await the latest US jobless claims figures and producer price index (PPI) data, which could influence Federal Reserve rate expectations. Futures for the S&P 500 and Nasdaq were flat, while the Dow Jones showed a slight uptick.
Stronger-than-expected inflation readings earlier this week have tempered hopes for imminent Fed rate cuts, keeping Treasury yields elevated. Tech stocks may remain under pressure if bond yields climb further, though bargain hunting could emerge if PPI figures come in softer than forecast.
Key takeaways for traders
- FTSE 100 supported by energy stocks, but broader sentiment remains cautious.
- US markets await PPI and jobless claims for fresh Fed policy clues.
With no major earnings reports due from European heavyweights today, macro data will likely drive market direction. Investors will be closely watching US figures to gauge whether the Fed can still deliver rate cuts this year—a key factor for global equity markets in the sessions ahead.
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