European equity futures edge down; Central bankers in abundance this week
By Peter Nurse
Investing.com – European stock markets are expected to open slightly lower amid no real direction at the start of a new week that includes key US inflation data, an abundance of central bank speakers and the first reading of the UK third quarter GDP.
At 3:05 am ET (0705 GMT), the DAX futures contract in Germany was trading down 0.1%, CAC 40 futures in France fell 0.1%, and the FTSE 100 futures contract in the United Kingdom. United fell 0.1%.
European stock markets received a lackluster transfer from Asia on Monday, after data released over the weekend showed China exports posted a record trade surplus in October, but disappointing import these results added to the evidence of a slowdown in domestic demand.
A number of central bankers are due to speak this week, with Federal Reserve Chairman Jerome Powell particularly interested at 10:30 a.m. ET (3:30 p.m. GMT) given the US central bank’s decision to start cutting back on purchases of bonds at its meeting last week.
The Fed remained convinced that high inflation would prove to be “transient” at last week’s meeting, and market conviction on this could be tested this week with October. CPI the numbers are expected to reach new multi-year highs.
Back in Europe, European Central Bank chief economist Philip Lane got the ball rolling by saying in an interview with a Spanish newspaper published on Monday that eurozone inflation would slow next year, repeating the bank’s well-established message that the strong price growth is temporary.
The first overview of economic growth in the UK for the third quarter is expected to be released on Thursday. This should show GDP growth slows to 1.5% from the previous quarter, a week after the Bank of England surprised markets by keeping interest rates unchanged.
Profits for Henkel (DE: HNKG) and Covestro (DE: 1COV) were released on Monday, but today the focus could be on airlines and the travel sector as the US prepares for lift travel restrictions in the event of a pandemic that have banned many international visitors since the start of last year. It comes after Pfizer’s (NYSE: PFE) trial results for its Covid antiviral pill gave travel inventories a boost on Friday.
Crude prices rose on Monday after Saudi Aramco (SE: 2222) raised the official selling price of its crude on Friday evening, indicating that demand continues to be strong despite high price levels.
Attention this week turns to the United States, and in particular the publication of the Energy Information Administration’s monthly survey which should provide short-term prospects for the market.
As of 3:05 am ET, U.S. crude futures were trading up 1.2% to $ 82.22 per barrel, while the Brent contract was up 1.1% to $ 83.64 .
Additionally, gold futures rose 0.1% to $ 1,817.85 / oz, while EUR / USD traded at 1.1565.