European markets slide at the open as investors prepare for more U.S. inflation data
European stocks opened lower Monday as investors prepare for more key inflation data out of the U.S. this week.
The pan-European Stoxx 600 index opened 1.03% lower with all sectors in negative territory apart from healthcare and utilities stocks.
The worst performer on the index was Germany energy company Uniper, its stock down 8.5% after a dispute flared up between Germany and Finland over the cost of rescuing the gas importer Uniper. The company asked for a German government bailout last week but its Finnish main shareholder Fortum rejected calls for more help for the ailing firm.
The best performer on the index was Swiss travel retailer Dufry, its shares up 6% after it said it had agreed to buy Italian airport and motorway caterer Autogrill.
The lower open for European stocks comes after the region’s markets closed higher last Friday as investors digested a stronger-than-expected jobs report out of the U.S., which showed that the economic downturn worrying investors has not yet arrived.
The jobs report, while good for the economy, could embolden the Federal Reserve to continue its aggressive rate hikes in the coming months to fight persistently high inflation. It will be tested with a slew of U.S. earnings from major banks and the latest consumer inflation reading coming up this week.
Elsewhere, investors in the U.K. will be watching developments surrounding the political uncertainty in the country after Prime Minister Boris Johnson announced last week that he would be resigning as Conservative Party leader. Johnson said he would stay on in the post while a successor was found. Eleven Conservatives lawmakers have announced their leadership bids over the weekend.
In Asia-Pacific markets overnight, Hong Kong’s Hang Seng index fell more than 2% after news that China has imposed fines on heavyweights Tencent and Alibaba.
China imposed fines on several companies, including tech giants Alibaba and Tencent, for not complying with anti-monopoly rules on disclosure of transactions, according to Reuters.
There are no major earnings or data releases on Monday.
