logo
  

European Shares Likely To Open On Cautious Note

stockmarkets jan15 13sep21 lt

European stocks are set to open on a cautious note Monday as investors fret over slowing global growth and rising inflationary pressures.

Investors await U.S. consumer inflation figures for August this week amid concerns the Federal Reserve and other central banks might move sooner to nudge interest rates up from the ultra-low levels.

U.S. wholesale inflation data published late last week showed prices climbed an annual 8.3 percent last month, marking the biggest annual gain since the Labor Department started calculating the 12-month number in 2010.

Japan's wholesale inflation hovered near a 13-year high in August as the country prepares for a leadership transition.

Asian markets traded mixed as Chinese tech stocks declined in Hong Kong after the Financial Times reported that Beijing wants to break up Ant Group's Alipay and create a separate app for its loan business.

Chinese electric vehicle stocks also fell after the country's industry minister said there are "too many" EV makers in China and the government will encourage consolidation.

Trade tensions also remained on investors' radar after reports the Biden administration was weighing a new probe into Chinese subsidies.

The dollar and oil gained in Asian trade, while Treasury yields and gold prices were barely moved.

U.S stocks retreated on Friday as virus worries persisted despite President Biden announcing new vaccination mandates.

The Dow and the S&P 500 both fell around 0.8 percent to extend losses for the fifth consecutive session, while the tech-heavy Nasdaq Composite shed 0.9 percent.

European stocks ended mostly lower on Friday as traders weighed concerns over rising inflation and the ECB's decision on Thursday to slow down bond buying under its pandemic stimulus program.

The pan European Stoxx 600 gave up 0.3 percent. The German DAX slipped marginally and France's CAC 40 index dropped 0.3 percent while the U.K.'s FTSE 100 finished flat with a positive bias.

For comments and feedback contact: editorial@rttnews.com

Follow RTT