Market Analytics and Technical Considerations
Key Points
Monday’s opening of European stock markets is anticipated to be muted as investors assess the publication of additional significant regional economic data and the continued loosening of mobility restrictions in more Chinese cities.
At 2:00 ET (07:00 GMT), the CAC 40 futures in France fell 0.1%, the FTSE 100 futures in the United Kingdom increased 0.1%, and the DAX futures contract in Germany traded 0.1% down.
Investors will be focusing on the release of the final November PMI statistics for the region, which are expected to show the Eurozone entering a recession as the year comes to a finish. European shares are expected to start the week in a cautious manner.
Retail sales data for the Eurozone for October is likewise likely to show a 1.7% decline month over month as rising inflation has a significant negative impact on expenditures.
The European Central Bank is still anticipated to raise interest rates at its final policy meeting of the year on December 15 despite these indications that the European economy are in trouble, as inflation is currently running over its 2% objective.
Before the start of the ECB’s blackout period, President Christine Lagarde will make two presentations. Traders will be watching to see whether she suggests a 50-basis point rate hike after data released the other week revealed that Eurozone inflation declined more than anticipated in November.
Due to this prudence, it is unlikely that the European markets would follow the good trend observed in Asia after several Chinese cities joined the significant economic center Shanghai and Beijing in easing some restrictions on movement and testing.
This sparked hopes for a widespread abandonment of the nation’s rigid “zero-COVID” policy, which has slowed China’s growth in the economy.
American crude futures were trading 0.7% higher at $80.50 a barrel by 2:00 ET, while the Brent price was up 0.6% at $86.06.
Gold futures also increased by 0.3% to $1,815.05/oz, and the EUR/USD traded 0.3% higher at 1.0564.
