European Shares Poised For Mixed Open On Weak China Data
European stocks are seen opening on a mixed note Tuesday, as investors digest weak Chinese data and await more earnings reports from the U.S. for direction.
China reported its second-lowest annual economic growth in almost 50 years, hit hard by stringent COVID measures and a property market slump.
GDP rose an annual 2.9 percent in the fourth quarter, weaker than the 3.9 percent expansion seen in the third quarter but faster than the 1.8 percent increase economists had expected.
In the whole year of 2022, GDP growth was 3.0 percent, missing government’s target of around 5.5 percent.
Other indicators for December such as retail sales and industrial production were weak but beat forecasts.
The U.S. earnings season picks up steam this week, with Goldman Sachs, Morgan Stanley, United Airlines, Procter & Gamble and Netflix among the prominent companies due to report their quarterly results.
On the economic front, traders will keep an eye on reports on producer prices, retail sales, industrial production, housing starts and existing home sales for additional clues on the U.S. economic outlook.
Asian markets traded mostly lower after about two-thirds of private and public sector chief economists in a World Economic Forum survey said a global recession is likely in 2023.
Japan’s Nikkei rose over 1 percent as the yen’s strength eased ahead of the Bank of Japan’s monetary policy decision on Wednesday. Speculation is rife that the central bank may further revise its ultraloose policy.
The dollar index moved sideways, and oil prices traded mixed while gold traded lower, but held above $1,900 per ounce.
U.S. markets were closed for the Martin Luther King Jr holiday overnight after the S&P 500 notched its largest weekly gain in two months on Friday.
European stocks ticked higher on Monday as investors assessed the outlook for inflation, economic and earnings growth outlook.
The pan European STOXX 600 gained half a percent as the World Economic Forum kicked off in Davos-Klosters, Switzerland.
The German DAX and France’s CAC 40 index both rose around 0.3 percent, while the U.K.’s FTSE 100 inched up 0.2 percent.
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