European stocks are facing headwinds Monday as investors navigate a week filled with critical economic data and corporate earnings reports, particularly in the United States. [[1]] sentiment is dampened by concerns over the federal Reserve’s future interest rate policy and the sustainability of gains seen in artificial intelligence stocks, with key reports on U.S.employment and Nvidia earnings looming large.[[2]] Early indicators point toward declines across major European indices, signaling a cautious start to the trading week.
La bourse Euronext dans the La Défense business district of Paris
European stock markets are poised for a lower open on Monday, November 17, as investors brace for a week of key economic data releases from the U.S. and the latest corporate earnings reports. Market focus will be heavily centered on the outlook for interest rates and the sustainability of the recent surge in artificial intelligence-related stocks.
The CAC 40 in Paris is currently indicated to open down 0.06%.
Futures markets suggest declines for other major European indices as well, with the Dax in Frankfurt seen down 0.09%, the FTSE in London down 0.11%, and the EuroStoxx 50 down 0.12%.
A key data point this week will be the delayed release of the U.S. September employment report, scheduled for Thursday. While the data may be somewhat dated given recent private sector surveys pointing to a cooling labor market, the report will be closely scrutinized for any signals regarding the Federal Reserve’s monetary policy path.
Federal Reserve officials have recently signaled a cautious approach to potential rate cuts. On Friday, November 15, Kansas City Fed President Jeffrey Schmid and Dallas Fed President Lorie Logan both expressed skepticism about the need for easing monetary policy in the near term.
“We expect weakness in employment data and rising inflation to create a risk-off environment. The return of ‘stagflation’ to the lexicon is not helpful,” said Bob Savage, Head of Macro Strategy at BNY.
Investors will also be watching Nvidia’s earnings report closely, as the tech giant’s performance is seen as a bellwether for the broader AI rally.
On Wall Street, the S&P 500 and Nasdaq rebounded on Friday, November 15, following a volatile session marked by concerns about artificial intelligence and skepticism from Federal Reserve officials regarding potential rate cuts.
The S&P 500, which had fallen more than 1% earlier in the day, finished down slightly at 6,734.11 points, a decrease of 0.05%. The Nasdaq Composite gained 0.13% to close at 22,900.59 points.
Despite Friday’s gains, the Nasdaq is down 0.45% for the week.
The Dow Jones Industrial Average, however, closed sharply lower, weighed down by declines in UnitedHealth (-3.2%) and Visa (-1.8%). The blue-chip index fell 0.65% to 47,147.48 points.
In Asia, the Tokyo Stock Exchange lost 0.1% amid market turbulence, with tourism-related stocks particularly hard hit due to escalating diplomatic tensions between Japan and China over Taiwan.
Japan’s economy contracted in the July-September period, marking its first decline in six quarters, as exports were negatively impacted by new U.S. tariffs, according to government data released Monday.
Investors in China and Hong Kong are also exhibiting caution in response to the weekend’s heightened tensions between Beijing and Tokyo, opting to lock in profits after a recent market recovery.
The Shanghai Composite Index is down 0.58%, while the CSI 300 index of large-cap stocks has fallen 0.84%.
The Hong Kong Stock Exchange is down 1.03%.
The U.S. dollar is strengthening as investors prepare for a series of economic data releases following the end of the recent government shutdown, hoping for clarity on the Federal Reserve’s December rate outlook.
The dollar is up 0.13% against a basket of reference currencies.
The euro is down 0.17% at $1.1600.
U.S. Treasury yields are largely unchanged. The yield on the 10-year Treasury is down 0.2 basis points at 4.1463%. The 2-year Treasury is down 0.8 basis points at 3.6059%.
Oil prices are declining, erasing gains from the previous week, as shipments have resumed at the Russian export hub of Novorossiisk following a two-day interruption caused by a Ukrainian attack on the Black Sea port.
Brent crude is down 0.9% at $63.81 a barrel, and West Texas Intermediate (WTI) crude is down 1% at $59.49.
No major economic indicators are scheduled for release on November 17.
(Reported by Mara Vîlcu, edited by Blandine Hénault)
