Live Markets: Europe before the bell: awaiting U.S. data

Carl Zeiss Meditec AG

11/12/2024 07:50

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    EUROPE BEFORE THE BELL: AWAITING U.S. DATA
    European shares were expected to edge lower this morning as global markets await U.S. CPI
data later, which could cement expectations for another rate cut at the Federal Reserve's last
meeting of the year next week.
    EuroSTOXX50 and FTSE futures fell 0.3% and 0.5% respectively, with traders also bracing for
the European Central Bank meeting on Thursday, where policymakers are also likely to further
reduce borrowing costs in the euro zone.
    Helped by easing monetary policy, European shares  .STOXX  have gained more than 8% this
year, although gains have been curbed by growing uncertainty over national politics and the
threat of the U.S. imposing higher import tariffs next year. 
    The S&P 500  .SPX  on Wall Street has surged more than 26% year to date, in a record
breaking run that has met heavy inflows in November following the election of Donald Trump as
president. Futures on the U.S. benchmark also pointed to a muted start ahead of the inflation
reading.     
    In corporate news, Zara owner Inditex  ITX.MC  was one to watch following weak third-quarter
results. Citi expects the stock to react negatively at the open, saying EPS was 6% below
expectations and gross margins disappointed.
    Eyes were also on online retailer Zalando  ZALG.DE  after bidding for peer About You
 YOUG.DE  as part of plans to form a pan-European e-commerce platform. 
    Still in Germany, optical systems maker Carl Zeiss  AFXG.DE  missed expectations, sending
its shares down 9% premarket. Adidas  ADSGn.DE  also fell in early trade after its headquarters
were raided as part of a tax investigation.
    Europe's largest tour operator TUI  TUI1n.DE  reported a boost in 2024 profit and projected
further growth into 2025 as it bolsters its holiday business to meet rising demand.
    Over in the UK, British American Tobacco  BATS.L  forecast stronger revenue growth in its
new category, which includes vapes and oral nicotine products, and combustibles, driven by
increased investments in the United States.
    
    (Danilo Masoni)
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