European stocks showed little direction on Monday as investors braced for Apple’s earnings report and monitored the fallout from Friday’s tech sector selloff. A decline in oil prices provided some relief, fueled by hopes of a resolution to the Iran war. The week ahead is critical, with markets still processing recent policy decisions from the Federal Reserve and European Central Bank, along with the U.S. midterm elections on Tuesday.
Investor sentiment remained fragile, particularly in Europe, where concerns over France’s fiscal outlook and ongoing street protests weighed on confidence. MSCI’s global stock index held steady, while Europe’s STOXX 600 edged up 0.05%, with tech stocks rising 0.40%. Nasdaq futures climbed 0.76%, and S&P 500 futures increased 0.34%, following sharp declines on Friday.
Analysts at BofA warned of potential downside risks for European equities, citing concerns over the AI capital expenditure cycle and limited competitive advantages. Meanwhile, U.S. markets faced uncertainty ahead of the midterm elections, with polls suggesting Democrats could win the House but fall short of a veto-proof majority in the Senate.
Apple’s stock has been a standout performer, rising for four consecutive months and overtaking Nvidia as the world’s most valuable listed company. Goldman Sachs analysts expect capital spending by hyperscalers to nearly double to US$800 billion this year and reach US$1.2 trillion in 2027, though they anticipate slower earnings growth for the S&P 500 next year.