European stock markets are divided, while German manufacturing output is falling. Now economic weakness in the spotlight
European Stocks Weighed down by German Industrial Output Decrease
European exchanges were neutral on Monday, pulled down by German contraction as markets awaited the week’s critical inflation report.
At 03:40 ET (07:40 the DAX was 0.1 percent above, the CAC 40 was 0.1 percent up. Whilst the FTSE 100 from the United Kingdom was 0.2 percent down.
Monday’s report indicated that German manufacturing output fell 1.5 percent month to a month in June. Since the Eurozone’s biggest economy was impacted by a downturn in demand globally, primarily from China.
An additional drop in German industrial output in June is yet an additional sign of this country’s persistent downturn. “Based on today’s figures, the likelihood of the interim projection for stagnant GDP expansion in the Q2 being adjusted lower certainly risen.”
The previous week, European equities faltered as a fall in the US credit rating, increasing Treasury rates. Alongside disappointing Chinese economic indicators dampened investor demand for risky assets.
European key inflation statistics from Germany is highlighted.
However, declines are modest as traders watch a succession of inflation statistics this week. In spite of rising views that the US Fed & the ECB are nearing the finish line of their hiking cycles. German CPI statistics, in addition to Chinese figures, are planned for publication on Tuesday. With data from the US following on Thursday.
The stock of Siemens Energy is climbed
In Europe, the earnings cycle is winding down, but Siemens Energy (ETR: ENR1n) remains in the limelight following the German energy firm revealed difficulties in its wind power unit which will cost it €2.2 B. culminating in a total deficit of about €4.5 billion for the entire year.
Nonetheless, the share price surged 3.9 percent after a brief dip, as the firm reported excellent rise in sales and earnings. As well as an all-time high order queues, in its 3rd-quarter results release.
PostN (AS: PTNL) shares rose more than 7 percent following the Dutch postal company raised its operating profit forecast for 2023.
Over this continent, the field of entertainment is going to be the focus. With Walt Disney (NYSE: ), News Corp (NASDAQ: NWSA), and Fox (NASDAQ: FOX). likely to announce poor results. Disney, in particular, has had a string of poor film releases, and its theme parks look to be suffering as well.
Crude Oil, Gold and Euro
Oil prices fell slightly on Monday, although stayed around their highs as of the middle of April. Following producers like Saudi Arabia & Russia unveiled proposals to prolong output restrictions for yet another month
By 03:40 ET, US oil futures were 0.2 percent down at $82.62 per barrel, and Brent futures were 0.2 percent lower @ $86.08.
The two contracts gained for the 6th week in a row last week, which is which was the longest win period from Dec 2021 through 2022.
Furthermore, gold futures lost 0.2 percent to $1,971.35/oz, whereas the EURUSD sank 0.2 percent to 1.099 mark.
