Editor’s Note
European markets are poised for a cautiously optimistic start to the week, with key indices across the continent indicating slight gains at the open. Investors are turning their focus to a busy schedule of corporate earnings and economic data releases.
PARIS, Feb 16 (Reuters) – Major European stock markets are expected to open slightly higher on Monday as a new week packed with corporate earnings and economic data begins.
According to early indications, the Parisian CAC 40 could gain 0.02% at the open. Futures point to a rise of 0.09% for Frankfurt’s DAX, 0.14% for London’s FTSE, and 0.05% for the EuroStoxx 50.
This Monday, markets are quiet amid limited trading in Asia and with the New York Stock Exchange closed for Presidents’ Day, but the week ahead is set to be busy.
On the day’s agenda, investors await the publication of eurozone industrial production figures at 10:00 GMT.
The earnings season continues in Europe and the United States, headlined by Walmart, whose quarterly figures should provide clues on consumer spending trends after a disappointing December for retail sales.
Analysts are concerned that tech giants are now engaged in a frantic race to be first in the field of artificial intelligence (AI), in whatever form, without regard for return on investment.
No major tech company reports earnings this week, leaving the modest Walmart to monopolize attention. The world’s first retailer to reach $1 trillion is also incorporating AI elements into its pricing, particularly in logistics, robotics, digital advertising, and online sales.
On the geopolitical front, an Iranian diplomat said on Sunday that Iran seeks to conclude a nuclear deal with the United States that brings economic benefits to both sides, a few days before a second round of talks between Tehran and Washington.
The New York Stock Exchange ended mixed on Friday in a volatile market, as signs of slowing inflation did not offset the weakness in tech stocks, linked to AI concerns, leading the S&P 500 and Dow Jones to post their biggest weekly decline since November.
The Dow Jones gained 0.10%, or 48.95 points, to 49,500.93 points. The broader S&P 500 rose 3.41 points, or 0.05%, to 6,836.17 points. The Nasdaq Composite fell 50.48 points, or -0.22%, to 22,546.671 points.
Asian stocks quietly consolidated their recent strong gains on Monday, as Lunar New Year holidays led to low trading activity, while gloomy economic data from Japan somewhat dampened the rise.
Japan’s economy rebounded in the fourth quarter but less than expected, posting modest growth, which poses a challenge for Prime Minister Sanae Takaichi’s government, against a backdrop of rising living costs hurting household confidence and domestic demand.
China, South Korea, and Taiwan were among the closed markets, leaving currencies and bonds calm, but precious metals under renewed pressure.
The Tokyo Stock Exchange rose 0.08%, as weaker-than-expected economic data and a post-election lull limited movements.
Hong Kong stocks climbed on Monday during a half-day session, driven by materials stocks, amid low volumes ahead of the Lunar New Year holidays, with mainland markets already closed for a week. The Hong Kong market advanced 0.52%.
US markets are closed on Monday for a holiday.
The Japanese yen started the week on a negative note after posting strong gains last week thanks to easing fiscal concerns, while the greenback is stable, as moderate inflation data strengthened arguments for an interest rate cut by the US Federal Reserve (Fed) later this year.
The Japanese yen fell 0.34% to 153.20 yen per US dollar. The dollar gained 0.05% against a basket of reference currencies. The euro lost 0.03% to $1.1863.
Oil prices moved little on Monday, as investors assessed the market implications of upcoming US-Iran negotiations aimed at easing tensions, against a backdrop of expected increased supply from OPEC+.
Brent fell 0.03% to $67.73 a barrel and US light crude (West Texas Intermediate, WTI) also fell 0.03% to $62.87.
COUNTRY GMT INDICATOR PERIOD CONSENSUS PREVIOUS
EZ 10:00 Industrial Production December
– Month-on-Month -1.5% 0.7%
– Year-on-Year 1.3% 2.5%
(Reporting by Mara Vîlcu, edited by Augustin Turpin)