- Eurostoxx -0.3%
- Germany DAX -0.5%
- France CAC 40 -0.6%
- UK FTSE -0.2%
- Spain IBEX -0.1%
- Italy FTSE MIB flat
European indices are opening slightly lower across the board as the more cautious risk mood carries over from yesterday. The selling pressure isn’t quite as intense for now, but there’s little reason for investors to be feeling too optimistic either.
The selloff in Wall Street yesterday continues to cast a shadow over broader sentiment, with concerns surrounding AI-related stocks and elevated oil prices keeping investors on edge. US futures are also looking more tepid today, with S&P 500 futures down 0.1% for the time being.
And to kick start the session, economic data isn’t offering much comfort either. France’s October flash PMI figures were a notable disappointment, with the composite reading falling to 48.4 from 51.1 in September. That puts the French private sector back into contraction, as both manufacturing and services activity deteriorated amid weakening demand and heightened political uncertainty.
That being said, I wouldn’t read too much into the French numbers alone just yet. Germany and the Eurozone PMI releases are still to come, and those will offer a better indication of whether the slowdown is spreading more widely.
For European stocks though, the concern is that weakening growth prospects are now adding to an already uncomfortable backdrop of higher bond yields, fiscal uncertainty, and a more fragile global risk sentiment.
This article was written by Justin Low at investinglive.com.