European Shares Set For A Soft Start Ahead Of PMI Data

European stocks may open a tad lower on Tuesday as investors await the latest business activity data from the region for directional cues.

Flash Purchasing Managers’ survey results from the euro area and unemployment data from the U.K. are awaited later in the day.

Asian markets hovered near 11-month lows, cutting early losses as Israel held off on a ground assault in the Hamas-controlled Gaza Strip.

Japan’s business activity contracted in October and Australia’s business activity fell to a 21-month low in the month, while South Korea’s producer price index rose for the third straight month in September due to higher prices for oil products and electricity, regional reports showed.

Chinese markets were seeing modest gains after Central Huijin Investment Co, a Chinese sovereign fund, said it purchased some exchange-traded funds (ETF) this week to support local stock markets.

Meanwhile, China launched an investigation into Taiwan-based iPhone-maker Foxconn, Apple Inc.’s most important partner – shaking the confidence of foreign companies in the country.

Oil prices were up around half a percent in Asian trade after suffering heavy losses on Monday.

The dollar softened against a basket of currencies and gold edged up as investors await key U.S. economic data this week and next week’s Federal Reserve’s monetary policy meeting.

This week’s U.S. economic calendar includes reports on new home sales, durable goods orders, pending home sales, initial jobless claims and third-quarter GDP.

The Commerce Department is due to release its report on personal income and spending this week, which includes readings on inflation said to be preferred by the Federal Reserve.

The U.S. earnings season continues to pick up steam this week, with bit tech companies due to report their quarterly results.

The European Central Bank is holding its penultimate meeting for 2023 in Athens on Thursday, a week before the Fed gathering.

U.S. stocks ended a choppy session mixed overnight as the yield on the benchmark ten-year note eased after briefly peaking above the key 5 percent level amid a surge in government debt and supply of bonds.

The Dow dropped 0.6 percent and the S&P 500 slid 0.2 percent to reach over four-month lows while the tech-heavy Nasdaq Composite rose 0.3 percent.

European stocks recovered from a weak start to end mixed on Monday as investors fretted about Middle East tensions and the prospect of higher-for-longer interest rates.

The pan European STOXX 600 inched down 0.1 percent. The German DAX finished marginally higher and France’s CAC 40 edged up half a percent while the U.K.’s FTSE 100 eased 0.4 percent.

Source: Read Full Article