European Stocks Dip as US Economic Data Looms, asian Markets Mixed
LONDON – European stock markets opened lower Thursday amid cautious trading as investors await a raft of key US economic releases later today, while Asian markets presented a mixed picture. The declines follow a session of muted activity in the US, where the S&P 500 edged higher despite concerns over corporate earnings and geopolitical factors.
The upcoming US data - including reports on trade balance, producer prices, retail sales, and unemployment claims – will be closely scrutinized for signals about the strength of the American economy and the potential path of Federal Reserve monetary policy. A government shutdown in the US casts a shadow over the reliability of some data releases.Concurrently, global markets are reacting to a move by former US President Trump, who has called for restrictions on the export of used cooking oil from China, a key component in renewable fuel production.
Across the Atlantic, the S&P 500 closed at 6,671.06, up 0.40%.The Dow Jones Industrial Average dipped slightly, ending the day at 46,253.31, down 0.03%. The Nasdaq composite saw stronger gains, rising 0.66% to 22,670.08. United Airlines reported lower revenue per seat but anticipates betterment in the fourth quarter, while Hewlett Packard Enterprise shares fell 6% in after-hours trading following investor day presentations.
Asian markets were largely divided. Japan’s Nikkei 225 led gains, rising 1.1% to 48,179. The Shanghai Composite edged up 0.1% to 3,916,while Hong Kong’s Hang Seng fell 0.4% to 25,799.
Currency markets saw the euro/dollar trading at 1.1657, up from 1.1645 at the close of US trading Wednesday and 1.1622 at the European close. The USD/JPY yen stood at 151.01, and EUR/JPY Yen at 176.03.
Today’s Macroeconomic Agenda Includes:
* 06:30 Unemployment - September (Netherlands)
* 08:00 Industrial Production – August (UK)
* 08:00 Trade balance – August (UK)
* 11:00 Trade balance – August (Eurozone)
* 14:30 Philadelphia Fed index - October (US)
* 2:30 PM Support Applications - Weekly (US)
* 2:30 PM Producer Prices – September (US)
* 2:30 PM Retail Sales – September (US)
* 4:00 PM Corporate Supplies – August (US)
* 4:00 PM Confidence of home builders – October (US)
* 5:00 PM Oil Stocks – Weekly (US)
* TSMC released its third-quarter figures.
* Nestle and Pernod Ricard are reporting turnover and first-quarter figures, respectively.
* ManpowerGroup will publish its third-quarter results. (Note: These publications may be affected by the US government shutdown.)
