Here’s a look at how European indices are faring at the open as we get into the new day/week:
- Eurostoxx -0.1%
- Germany DAX -0.2%
- France CAC 40 -0.1%
- UK FTSE -0.1%
- Spain IBEX -0.1%
- Italy FTSE MIB +0.2%
The more cautious tone comes despite a stronger tech-led session in Asia, as investors have to contend with another push up in oil prices, relatively hawkish central bank expectations, and still lingering US-Iran tensions.
Of note, WTI crude is trading up 0.5% to $91.95 with Brent crude up 0.8% to $97.05 currently. That comes as US and Iran exchange more strikes near the Strait of Hormuz with the latter also preparing for restrictions along the waterway.
The moves to start the day are relatively light, and limited by mixed signals from US futures. S&P 500 futures may be flat but Dow futures are down 0.4% while Nasdaq futures are up 0.2%. The cash market in the US will be closed in observance of Labor Day, so that will further restrict any directional push from here towards the market sentiment in Europe.
For now, it seems that the key concerns noted above are offsetting the positive read-through from tech gains to start the new week.
There will be much bigger fish to try with the ECB policy decision coming up on Thursday and more importantly the US CPI report on Friday.
This article was written by Justin Low at investinglive.com.