Asian and European markets expected to open mixed on Monday amid cautious investor sentiment, as traders digest inflation trends, oil price movements, and signals from the US Federal Reserve. Analysts suggest the week will begin with limited risk appetite as markets await key economic data releases from both Asia and the United States.
Asian outlook
In Asia, most major indices are forecast to open flat to slightly lower. Tokyo’s Nikkei 225 could retreat after a strong run last week, with investors eyeing fresh guidance from the Bank of Japan on potential policy adjustments. In China, sentiment remains fragile as markets continue to react to slowing industrial output and weak consumer spending, while Hong Kong’s Hang Seng Index may face renewed pressure from technology and property sectors.
India’s steady momentum
India’s Sensex and Nifty 50 are expected to start the week with modest gains, supported by continued domestic inflows and optimism surrounding quarterly earnings. However, concerns about rising bond yields and foreign outflows could limit upside potential. The Indian rupee is likely to remain stable against the dollar, reflecting cautious optimism over macroeconomic stability and robust export performance.
Europe eyes inflation data
European markets are likely to open on a muted note as investors await inflation readings from Germany and the eurozone later in the week. The FTSE 100, DAX, and CAC 40 are seen fluctuating within narrow ranges, reflecting ongoing uncertainty over the European Central Bank’s policy path. Analysts believe any upside will depend on whether inflation shows signs of easing enough to support rate-cut expectations heading into December.
Arab markets and oil dynamics
In the Middle East, Gulf markets are expected to track oil prices closely after Brent crude slipped below $85 a barrel on Friday. Saudi Arabia’s Tadawul and the Dubai Financial Market could see limited movement as traders reassess regional growth forecasts. Energy stocks may face mild selling pressure, though sentiment could stabilise if oil recovers midweek amid renewed demand outlooks from Asia.
US markets brace for data-heavy week
Wall Street futures point to a mixed open when trading resumes, with investors anticipating fresh data on inflation, consumer sentiment, and retail sales. The Dow Jones, S&P 500, and Nasdaq Composite all ended last week higher, buoyed by easing Treasury yields. However, traders remain wary that any rebound in inflation figures could dampen expectations of near-term rate cuts by the Federal Reserve.
Newshub Editorial in Europe – 9 November 2025
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