Inflation Worries Seen Weighing On European Market Sentiment

European stock markets are seen opening on a weak note on Tuesday amidst worries about inflation, ahead of the release of crucial inflation indicators. The PCE-based inflation readings from the U.S., seen as the Fed’s preferred inflation gauge is due on Thursday. Inflation updates from the Euro Area are also due in the coming days, weighing on sentiment.

Wall Street had closed with mild losses on Monday amidst anxiety ahead of the release of the PCE readings. Nasdaq Composite edged down 0.07 percent to close at 14,241.02 whereas the Dow Jones Industrial Average slipped 0.16 percent to finish trading at 35,333.47.

Inflation worries dominated sentiment on Monday in the European bourses as well, ahead of release of latest macro-economic updates from the region and other major economies. Switzerland’s SMI topped losses with a decline of 0.54 percent. Germany’s DAX and the pan-European Stoxx-50 declined 0.39 percent whereas France’s CAC 40 and U.K.’s FTSE 100 erased 0.37 percent.

Current indications from the European stock futures indicate a weak sentiment. The CAC 40 Futures (Dec) is trading 0.04 percent higher. The DAX Futures (Dec) is currently trading 0.09 percent lower. The FTSE 100 Futures (Dec) is trading 0.02 percent lower. The pan-European Stoxx 50 Futures (Dec) has slipped 0.14 percent. The SMI Futures (Dec) has traded 0.42 percent lower.

American stock futures indicate mild gains. The US 30 (DJIA) is trading 0.07 percent higher, whereas the US500 (S&P 500) is trading 0.04 percent higher.

Asian stock markets are trading on a mixed note. South Korea’s KOSPI has rallied 0.80 percent. New Zealand’s NZX 50 has gained 0.73 percent. Australia’s S&P ASX 200 has added 0.39 percent. China’s Shanghai Composite has edged down 0.09 percent. Japan’s Nikkei 25 has slipped 0.08 percent. Hong Kong’s Hang Seng has slipped 0.77 percent.

The Dollar Index (DXY), a measure of the U.S. dollar’s strength relative to six currencies, slipped 0.03 percent to 103.17 versus the previous close of 103.20. The EUR/USD pair has edged up to 1.0953 whereas the GBP/USD pair has gained 0.02 percent to trade at 1.2628.

Gold futures prices are 0.17 percent above the flatline amidst the Dolla’s weakness. Gold Futures for December settlement is trading at $2,015.75 per troy ounce, versus the previous close of $2,012.40.

Amidst anxiety ahead of the OPEC meeting, Brent Crude Futures for February settlement increased 0.08 percent to $79.93 whereas WTI Crude Futures for January settlement gained 0.07 percent to $74.91.

On Tuesday, GfK Consumer Confidence data for December is due from Germany and the Consumer Confidence reading for November is due from France. Markets would also be keenly watching out for European Central Bank President Christine Lagarde’s speech at the 2023 European Financial Reporting Advisory Group Conference. Bank of England’s Jonathan Haskel and ECB’s Philip. R. Lane are also scheduled to speak later in the day.

Earnings updates due on Tuesday from the region include CD Projekt, L’Occitane International, EasyJet, Trigano as well as Pets at Home Group.

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