European stock markets are heading for a lower opening on Monday, after a disappointing inflation rate in the US last Friday, which could mean that the Federal Reserve will raise interest rates even more aggressively.
An opening loss of 219 points for the German DAX and a minus of 101 points for the French CAC 40. The British FTSE seems to open 47 points lower. The stock markets in Europe ended in the red on Friday. After the interest rate hike announced by the European Central Bank for July on Thursday, investors mainly consumed the US inflation figures on Friday.
According to market analyst Michael Hewson of CMC Markets, it has been a negative week for the exchanges, with investors increasingly worried about inflation that does not seem to be cooling off and is expected to have an impact on both consumer confidence and corporate profits.
“Initial optimism about a reopening of the Chinese economy at the beginning of the week gave way to gloom as Shanghai authorities announce new lockdowns and restrictions,” Hewson added.
A notable increase in Europe was the price of the Just Eat Takeaway share. According to Bloomberg, there is interest among private equity companies for an acquisition of Grubhub from the Amsterdam meal delivery company. The share rose almost 6 percent.
In Frankfurt, only Deutsche Boerse managed to rise. The share won around one percent. Deutsche Bank ended up at the bottom of the DAX, with a loss of almost 6 percent. Siemens delivered more than 5 percent.
In Paris, Euroapi was the only riser, with a plus of just over one percent. The biggest losers were the French banks, with losses of 5 to 6 percent for BNP Paribas, Société Générale and Credit Agricole.
US futures forecast a red opening on Monday.
U.S. stock markets ended lower on Friday. Investors processed new inflation data from the United States. The hope beforehand was that a peak had been reached. However, inflation reached 8.6 percent in May, both higher than in April and the 8.3 percent analysts had expected. Core inflation stood at 6.0 percent, above the 5.9 percent that had been foreseen. Inflation is still far from peaking and that fuels recession fears.
High inflation also fuels the expectation that the Federal Reserve will raise interest rates by 50 basis points after the June and July meetings in September as well. The cost of living rose to 5.5 percent year-on-year in May. On a monthly basis, inflation for housing rose from 0.5 to 0.6 percent.
WTI oil cost more than $ 120 per barrel on Friday, making it about 1.5 percent more expensive on a weekly basis.