Today, the major European stock markets will open August trading with a mixed bag as investors hope to build on the positive momentum from last week. The same can’t be said of emerging markets in Asia, which are suffering from weaker than expected export figures and concerns over further devaluation in the Chinese yuan. While China’s economy continues to slow down, they continue to try and shore up the economy through various stimulus measures. In the short term, their actions appear to be helping but investors are worried about what this means for the future of China’s currency and its effect on global growth as a whole.
The European Stock Market is Expected to Open Mixed on Monday, as Stocks
European stocks are expected to open on Monday in mixed condition, so far kicking off August trading on a shaky note. On data from IG, the U.K.’s FTSE index is predicted to open 8 points lower at 7,420, Germany’s DAX up 1 point at 13,478, and The French CAC 40 is down 9 points at 6,442 and Italy’s FTSE MIB is down 55 points at 22,343. Today’s European stock trading, where futures markets are open, will likely increase.
These expectations come after European markets ended July with their strongest monthly performance since November 2020. Analysts and investors combed through a fresh chunk of corporate earnings and economic data from the Eurozone last week, taking in the latest numbers, released Friday, that indicated that economic growth has increased in the Eurozone, despite the escalating gas crisis and record-high inflation. As a result, the 19-member bloc reported gross domestic product growth of 0.7%, exceeding expectations of 0.2%, and contrasted sharply with the negative numbers coming out of the United States in the first and second quarters.
U.S. Stock Futures Fell Overnight Following The Best Month For Stocks in Over Two Years as Investors
U.S. stock futures slid overnight following the stock market’s best month since 2020 as investors prepared for more important earnings reports and economic data this week, including Friday’s Nonfarm Payrolls report from the Bureau of Labor Statistics. In light of this year’s steady increase in jobs, economists say the U.S. is not in a recession despite two-quarters of negative GDP. On Monday, mainland Chinese stocks rose along with most regional indexes as a private survey of Chinese factory activity showed slight growth.
Revenues are generated from HSBC, Credit Suisse, Pearson, Heineken, and Erste Group. Data from Europe has been released including unemployment figures from the eurozone for June and the euro zone’s final PMI data for July.