Stock markets in Europe are expected to open on a negative note on Monday amidst caution ahead of the release of CPI numbers from the U.S. on Wednesday. The unexpectedly strong jobs data released on Friday is also expected to weigh on sentiment.
Wall Street had closed on a negative note on Friday as markets digested the strong labor market data and the likelihood of an extended pause by the Federal Reserve. The Dow Jones Industrial Average dropped 1.63 percent to finish trading at 41,938.45. The Nasdaq Composite also slipped 1.63 percent to close trading at 19,161.63.
European markets had also closed on a weak note on Friday amidst strong payrolls data from the U.S. and the prospect of slower-than-expected rate cuts by the Federal Reserve. Switzerland’s SMI plunged 1.13 percent. U.K.’s FTSE 100 slipped 0.86 percent. The pan-European Stoxx-50 dropped 0.82 percent. France’s CAC 40 erased 0.79 percent whereas Germany’s DAX lost 0.50 percent.
Current indications from the European stock futures indicate a weak sentiment. The DAX Futures (Mar) is trading 0.20 percent lower. The CAC 40 Futures (Feb) has declined 0.19 percent. The FTSE 100 Futures (Mar) has also lost 0.23 percent. The pan-European Stoxx 50 Futures (Mar) has decreased 0.34 percent. The SMI Futures (Mar) had closed on a flat note on Friday.
American stock futures are trading below the flatline. The US 30 (DJIA) is trading 0.21 percent lower, whereas the US500 (S&P 500) is trading 0.47 percent below the flatline.
Asian stock markets are trading on an overwhelmingly negative note tracking losses in Wall Street on Friday. SX 200 has lost 1.23 percent. South Korea’s KOSPI has declined 0.99 percent. India’s Nifty 50 has erased 0.50 percent. China’s Shanghai Composite has plunged close to 0.37 percent whereas Hong Kong’s Hang Seng has tumbled 1.2 percent. Markets in Japan are closed for a holiday.
Amidst upbeat jobs data and renewed doubts about the Fed’s rate cuts in 2025, the Dollar Index, a measure of the U.S. dollar’s strength relative to six currencies, has jumped to a 109.95 versus the high of 109.97 on Friday. The EUR/USD pair has slipped 0.24 percent to 1.0213 percent whereas the GBP/USD pair has dropped 0.53 percent to trade at 1.2142.
Amidst the uncertain interest rate environment, Gold Futures for February settlement is trading at $2,714.14, which is 0.03 percent lower than the previous close of $2,715.
Supply fears, particularly about the potential reduction in supply from Russia lifted crude oil prices. Brent Crude Futures for March settlement rallied 1.8 percent to trade at $81.19 whereas WTI Crude Futures for March settlement added 1.6 percent to trade at $76.99.
Among data releases, the Consumer Confidence update for December is due from Switzerland.
Major earnings updates due from the region include Marks & Spencer, Whitbread, Hornbach-Baumarkt as well as Big Yellow.
European Markets Seen Opening Weak
2025-01-13 06:00:21
