European markets open to close, stocks, data, US inflation
LONDON — European stocks are expected to open in negative territory amid nervousness over inflation, with the next reading of U.S. inflation due at the end of the week.
The U.K. FTSEIndex opens 39 points lower than 7,576, Germany. DAX 113 points lower at 14,540, France’s CAC 40 down 54 points at 6,502 and Italy’s FTSE MIBAccording to data from IG, it was 186 points less at 24,346,
The international markets will be watching for important U.S. data releases, including Friday’s latest inflation reading.
It is anticipated that May’s Consumer Price Index in the U.S. will be only slightly less than April. Some economists expect it to confirm that inflation has reached its peak.
Investors will be keeping a close eye on the University of Michigan’s consumer sentiment index which is due Friday.
It will be fascinating to see the U.K. trading sessions on Tuesday, amid ongoing political turmoil. Boris Johnson, U.K. Prime minister survived the vote of confidence on Monday night. It was initiated by his own legislators amid growing dissatisfaction about his leadership.
Monday’s vote saw 211 Conservative Party members voting in support of the prime minster, and 148 against. Johnson had to have the support of an easy majority of 180 MPs in order for him to win, though the result of 148 was more disappointing than people expected.
Even worse is the outcome of an identical vote in 2018 that Theresa May, former leader of Britain’s opposition party, received. Just six months after her resignation, she was elected prime minister.
The earnings and data fronts in Europe are quiet today, but Germany’s industrial orders numbers will be published soon.
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