top of page

Title: European Stock Futures Lower; Eurozone CPI Looms Large

Writer's picture: analysiswatchanalysiswatch

Jul 01, 2022 01:58AM ET


By: AnalysisWatch


European stock markets are expected to open weaker Friday as investors are increasingly concerned about the global economic outlook as central banks tighten monetary policy to combat rising inflation.


At 2 AM ET, DAX futures in Germany traded 0.9% lower, CAC 40 futures in France fell 0.7%, and FTSE 100 futures in the U.K. dropped 0.5%.


European Central Bank President Christine Lagarde warned in a speech at the central bank's annual forum earlier this week that the central bank will go "as far as necessary" to bring inflation back to its 2% target.


The main focus will be on consumer price data for the eurozone, which will be released later on Friday, and investors will be looking for signs that inflation has peaked. Inflation in Germany unexpectedly slowed last month, but the annual consumer price index for the euro area is expected to rise to 8.4% in June, a new record high after reaching 8.1% the previous month.


In addition, data on the Purchasing Managers' Index for the manufacturing sector in the eurozone, and especially in Germany, the powerhouse of the region, will be released on Friday and is expected to show a deterioration in confidence in this key sector.


It is not only in Europe that economic growth is slowing. Consumer spending growth in the U.S. weakened in May for the first time this year, while manufacturing activity in Asia, excluding China, stalled in June, weighed down by supply disruptions, rising costs, and persistent material shortages.


One bright spot was China, where manufacturing expanded at its fastest pace in 13 months in June, helped by the lifting of COVID freezes.


Sodexo will be in the spotlight after the French food services group reported third-quarter sales above expectations and led strong growth across all business segments and regions, supported by price increases and a recovery in volumes following the Omicron effect.

1 view0 comments

Comments


2b94f773-a237-4da7-a599-6b42314ed9e6.png

Risk Disclosure: AnalysisWatch will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible. Currency trading on margin involves high risk, and is not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite.
AnalysisWatch would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore AnalysisWatch doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.

bottom of page