European Markets Expected to Open Lower as Earnings and Economic Data Take Center Stage
European markets are poised for a cautious start on Tuesday, with key indices expected to open lower amid ongoing investor focus on earnings and economic data. The U.K.’s FTSE 100 is forecast to open 0.2% lower, while Germany’s DAX, France’s CAC 40, and Italy’s FTSE MIB are each seen down around 0.4%, according to IG data. Analysts note that market participants are digesting both corporate results and broader economic signals as they weigh potential risks.
Investors’ attention remains on corporate earnings this week. Miners Antofagasta and BHP Group, as well as InterContinental Hotels Group, released their latest financial results on Tuesday. Monday had seen modest gains in regional markets, largely driven by investor reactions to statements from the Munich Security Conference, highlighting that geopolitical concerns continue to influence market sentiment.
Currency movements are also shaping the market mood. Sterling fell 0.5% against the dollar, trading at $1.356, after U.K. employment data showed a decline in payrolled workers, with 134,000 fewer employees than the previous year and a small rise in unemployment to 5.2% in December. The pound was also down 0.4% versus the euro, reflecting investor caution ahead of upcoming economic reports.
In Germany, inflation pressures appear to be building. Consumer prices rose 2.1% in January, up from 1.8% in December, according to the German Federal Statistical Office. “The rise in overall consumer prices intensified at the start of the year,” said Ruth Brand, the office’s president. Analysts suggest that the higher inflation figure could influence European Central Bank policy discussions in the coming months.
Overnight in the U.S., S&P 500 futures were largely unchanged after two consecutive weeks of losses, with markets closed Monday for Presidents’ Day. Meanwhile, Asian financial markets were subdued on Tuesday due to Lunar New Year holidays, with major markets in China, Hong Kong, Singapore, Taiwan, and South Korea closed. Investors globally remain cautious as earnings season and economic indicators continue to steer trading decisions.
source: cnbc