European stocks drift lower; key economic data releases to guide sentiment
By OXShare
On Monday, the European stock markets mostly experienced a decrease in trading, causing investors to feel worried as the week ahead includes several significant economic reports.
The German DAX index traded down by 0.1% at 03:15 ET (08:15 GMT), the French CAC 40 index remained mostly unchanged, and the U.K.’s FTSE 100 index dropped by 0.2%.
Stock exchanges worldwide have experienced a positive month overall. The DAX in Europe has seen an increase of approximately 9%, while Japan’s Nikkei has risen by over 8% in November. Similarly, the broad-based S&P 500 in the U.S. has had its strongest performance since mid-2022.
The progress made is quite significant, so it’s not unexpected that there is some hesitation as we approach the end of the month.
Key inflation data due
Further exacerbating the anxiety on Monday is the awareness that the approaching week will witness the unveiling of several significant economic figures that may influence central banks’ decision-making processes for the upcoming series of policy-setting conferences in December.
On Thursday, information regarding inflation in the European Union, as well as in Germany and Spain, will be released. It is predicted that core EU inflation will be at 3.9%, the lowest it has been since the middle of last year. This could potentially indicate that the European Central Bank is done with raising interest rates.
European Central Bank President Christine Lagarde is set to give a speech at the European Union parliament later on Monday, and her remarks will be closely analyzed for any indications regarding upcoming policies.
On Thursday, the Federal Reserve will release their preferred inflation measure called personal consumption expenditures. Additionally, China’s important purchasing managers index readings for November will also be revealed on the same day.
Middle East truce
There is not much information available in Europe on Monday, except for the notable U.K.’s CBI distributive trades survey for November.
Investors may pay attention to the situation in Gaza, where Israel and Hamas have agreed to a ceasefire, resulting in Israel recovering some of the individuals who were taken hostage by Hamas on October 7. Additionally, Israel has released certain Palestinians who were imprisoned for security reasons. Meanwhile, the earnings calendar remains relatively uneventful.
Crude lower with OPEC+ meeting in focus
On Monday, the price of oil declined as investors anxiously anticipated the postponed OPEC+ gathering later in the week, hoping to receive updates on production levels up to 2024.
At 03:15 ET, the price of U.S. crude futures decreased by 1% to $74.81 per barrel, while the Brent contract fell by 0.9% to $79.78 per barrel.
Last week, the initial signs of improvement were seen in the unrefined indicators as they recorded slight progress. This marked the first positive week in five. However, there was a significant drop in the middle of the week due to the postponement of a meeting between the Organization of Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+. The meeting, originally scheduled for November 26, was delayed until November 30. The reason behind this delay was reported to be disagreements concerning the proposed reduction in production levels.
Reports suggest that the group has made progress in reaching a compromise, and it seems probable that the unilateral cuts by Saudi Arabia and Russia will be extended until at least the first quarter of the upcoming year.
In addition, the price of gold futures increased by 0.5% to reach $2,012.95 per ounce, while the EUR/USD currency pair traded 0.1% higher at a rate of 1.0949.