European Stocks Open Mixed as Investors Eye US Inflation Data
The European stocks market opened mixed on Monday, marking a slow start to the new week. Investors are closely watching developments in the Middle East and looking ahead to US inflation data set to be released on Wednesday.
The FTSE 100 index fell by 10.01 points, or 0.1%, to open at 10,891.08. The FTSE 250 eased by 9.95 points, while the AIM all-share rose by 3.21 points. Cboe indexes showed similar trends, with the UK 100 down by 0.2% and the small companies index losing 0.3%. In European equities, the CAC 40 in Paris was slightly lower, while the DAX 40 in Frankfurt was up by 0.1%.
Analysts at ING noted that Friday's weak payrolls report marked the first dovish signal in their five-test countdown to the September Federal Open Market Committee (FOMC) meeting. Wednesday's consumer price index data is expected to show a cooling of inflation, with the annual rate predicted to drop to 3.4% from 3.5% in June.
US President Donald Trump downplayed the prospect of reopening the Strait of Hormuz, saying that 'it will work out' despite Iran's demands for compensation and compliance with certain conditions. Analysts at Deutsche Bank described the situation as 'finely balanced', with Tehran attempting to balance a tougher domestic posture with a continued search for a diplomatic off-ramp.