Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

European Stock Futures Drop; Macron's Victory Offers Minor Respite

Stock Markets Apr 25, 2022 02:11AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Peter Nurse 

Investing.com - European stock markets are expected to open lower Monday as investors fret about the prospect of slowing global growth and sharp monetary policy tightening, with Emmanuel Macron winning a second term as French president offering minor relief.

At 2:05 AM ET (0605 GMT), the DAX futures contract in Germany traded 1.9% lower, CAC 40 futures in France dropped 0.9%, and the FTSE 100 futures contract in the U.K. fell 1.1%.

Macron was projected to have won the French presidential election late Sunday, comfortably beating the challenge of far-right rival Marine Le Pen. This will provide markets with a degree of stability in the Eurozone's second-largest economy as well as reassurance about France's commitment to an integrated Europe.

That said, this result was largely expected, and investors remain concerned whether the global economy can withstand the increasingly hawkish pivot from a number of key central banks, in particular, the Federal Reserve, the slowdown of Chinese growth due to COVID lockdowns as well as the impact of the ongoing Russia-Ukraine war.

Fed Chair Jerome Powell said last week a half-point interest rate increase "will be on the table" when the central bank meets in early May, suggesting a more hawkish path than projected at the central bank’s March meeting.

The ECB is also sending stronger tightening signals, with Vice President Luis de Guindos acknowledging last week the possibility of a rate increase in July, potentially the bank’s first in 12 years. 

Also weighing on sentiment are concerns about the outlook for growth in China, the world’s second largest economy, as it battles its most significant outbreak of COVID-19 since the original flare-up. 

Shanghai, China’s financial hub, reported almost 20,000 new cases on Sunday, suggesting the stringent containment measures in place for several weeks are only having a limited impact. Additionally, dozens of infections were found in Beijing, the nation’s capital, over the weekend.

Meanwhile, the war in Ukraine enters its third month, adding to the general state of uncertainty, particularly in Europe. U.S. Secretary of State Antony Blinken and Defense Secretary Lloyd Austin are due for talks on Kyiv Monday.

In corporate news, Swiss drugmaker Roche (SIX:RO) recorded a better-than-expected 10% rise in first quarter sales and confirmed its 2022 outlook, helped by strong demand for rapid COVID-19 antigen tests.

On the flip side, Dutch health technology company Philips (AS:PHG) said first quarter core profit dropped about a third from a year earlier, hit in part by a recall of a large number of its ventilators.

The main economic release in Europe on Monday will be the Ifo’s latest business climate survey from Germany, which is expected to show a small deterioration in sentiment.

Oil prices slumped to near two-week lows Monday on increased concerns that the spreading COVID outbreak in China, the world’s largest importer of crude, will stunt demand.

By 2:05 AM ET, U.S. crude futures traded 3.4% lower at $98.64 a barrel, while the Brent contract fell 3.3% to $102.60. Both benchmarks dropped around 5% last week, and have now fallen to levels last seen on April 12.

Additionally, gold futures fell 0.9% to $1,916.05/oz, while EUR/USD traded 0.3% lower at 1.0761.

European Stock Futures Drop; Macron's Victory Offers Minor Respite
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
John Avenetti
John Avenetti Apr 25, 2022 2:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The WHOLE of the Western World is R I G G E D.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email