European Markets Set To Start The Week On A Negative Note

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European stocks are expected to open in negative territory on Monday, bucking more positive sentiment overnight in Asia.

London’s FTSE is seen opening 17 points lower at 7,109, Germany’s DAX23 points lower at 15,738, France’s CAC 40 down 8 points at 6,815 and Italy’s FTSE MIB 87 points lower at 25,891, according to IG.

The lackluster start to the trading week in Europe contrasts with more positive sentiment elsewhere; Asia-Pacific markets traded mostly higher on Monday, with indexes in Australia, Hong Kong and the Chinese mainland posting gains.

Data out of China Monday showed the country’s export growth unexpectedly slowed in July while imports also lost momentum. Exports rose 19.3% from a year ago, compared with a 32.2% gain in June and versus a market forecast of a 20.8% gain, Reuters reported. Imports rose 28.1% from a year earlier, less than a market forecast of a 33% increase.

Meanwhile, U.S. stock futures were flat in overnight trading Sunday despite major indexes ending the last trading week higher following a stronger-than-expected jobs report.

The Labor Department jobs report Friday showed the U.S. economy added 943,000 jobs in July. Economists expected 845,000 new jobs last month, according to Dow Jones estimates. The unemployment rate dropped to 5.4%, below the expectation of 5.7%.

Investors are awaiting key U.S. inflation data scheduled for release this week. The consumer price index and the producer price index are scheduled to come out Wednesday and Thursday, respectively.

In addition, several Fed officials are scheduled for speaking appearances in the week ahead, with investors listening with a close ear for insights into the central bank’s tapering decision making.

Europe data releases on Monday include German export and import data for June and Greece’s industrial output for June. There are no major earnings releases.


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