European stock markets fell on Monday, following the trend set by Asian markets overnight and Wall Street on Friday. Investors are anxiously awaiting the release of key U.S. inflation data, which could have a significant impact on global markets.
Global sentiment took a hit as uncertainty over U.S. interest rates grew, leading traders to lock in profits, especially in the technology sector. In Asia, Japan’s Nikkei dropped over 2% as the country’s GDP data showed it avoided a recession in the fourth quarter, potentially paving the way for interest rate hikes.
With little significant economic data in Europe on Monday, investors are cautious ahead of Tuesday’s inflation data release, as they try to gauge the Federal Reserve’s next move. Fed Chair Jerome Powell hinted at possible rate cuts this year, but emphasized the need for confirmation that inflation is under control.
In corporate news, Currys stock slumped after U.S. investor Elliott Advisors withdrew its interest in making an offer for the British electronics retailer. HelloFresh also faced a significant drop in its stock price after announcing lower earnings expectations for 2024.
Oil prices stabilized on Monday after recent losses, with concerns over slowing demand from China, the world’s largest importer of crude. Gold prices rose slightly, while the euro and pound remained relatively stable.
Overall, the global markets are facing uncertainty and volatility as investors await key economic data and corporate earnings reports.
