Newscasts - Europe Markets Briefing: European markets struggle ahead of key inflation reports
12/08/2024 15:45
Click the following link to watch video: https://share.newscasts.refinitiv.com/link?entryId=1_lqq35tps&referenceId=1_lqq35tps&pageId=Newscasts Source: 'Reuters - Business videos' Description: European stocks traded slightly lower, with U.S. and UK inflation data on Wednesday set to dominate focus in the coming days. OPEC cut its forecast for global oil demand growth in 2024 citing softer expectations for China. Short Link: https://refini.tv/4fEi7Xn Video Transcript: European markets trade cautiously, awaiting key inflation reports. Welcome to your Europe Markets Briefing. I am Peter Devlin. European stocks struggled to gain traction in a new trading week. Cautious investors are now preparing for US and UK inflation data on Wednesday to dominate sentiment. Oil and gas stocks gained as escalating tensions in the Middle East propped up oil prices. We look to shares of BT Group outperformed. That was after India's Bharti Enterprises agreed to buy a 24.5% stake from the British company's top shareholder. Financials also gained as top mover on the DAX, Hannover Re, surged after the German reinsurer reported strong earnings. The CAC was weighed by shares of luxury goods maker, Kering, falling nearly 2% lower. Oil prices rose for a fifth consecutive session, extending gains from the prior week's more than 3% rise. OPEC trimmed its forecast for global oil demand growth for this year and next. The oil cartel cited weaker-than-expected data for the first half of the year, as well as softer expectations for China. This would mark the first reduction in OPEC's 2024 forecast since it was made in July 2023. With the IEA set to release their monthly report tomorrow, one analyst we spoke to expects much of the same. They are probably going to mimic the same kind of message: demand coming in weaker than expected. Again, we will see if they revise down lower the number that they currently indicated to start the year. But, again, I think they are going to mirror this message that demand is coming in weaker than expected. A busy week of economic data in the UK kicks off tomorrow, with labor market report. Wages grew at the slowest pace in almost two years in May, strengthening signs of a cooling labor market. The unemployment rate is expected to tick higher to 4.5% from the 2021 highs of 4.4%. Resident hawk and Bank of England policymaker Catherine Mann warns in the Financial Times Podcast this morning that wage pressures could take years to dissipate. Outside of the UK and German investor morale is expected to deteriorate further. The ZEW's Economic Sentiment reading is expected to fall to 32.0 from 41.8 in July. The figure registered its first fall in a year in July, suggesting that the recovery in the Eurozone's largest economy will be bumpy. Earnings continued to roll in with Germany's Henkel due to report. The consumer goods company raised its full-year outlook again in July, expecting a higher adjusted return on sales. But Nielsen data revealed consumer goods makers will be weighed down by weak US and European sales. And HelloFresh earnings are expected to meet its consensus second-quarter targets. But analysts warn that their guidance is not without risk due to high marketing costs as well as higher costs elsewhere. That is your Europe Markets Briefing