European markets set for negative open as traders await U.S. inflation data

Holly Ellyatt

European markets are heading for a negative open on Wednesday as traders await the latest U.S. inflation data.

The U.K.’s FTSE 100 index is expected to open 33 points lower at 8,244, Germany’s DAX down 52 points at 20,295, France’s CAC down 14 points at 7,372 and Italy’s FTSE MIB down 21 points at 34,524, according to data from IG.

The U.S consumer price index data will likely influence how the Federal Reserve proceeds on interest rates at its Dec. 17-18 meeting. Economists polled by Dow Jones forecast that headline inflation rose 0.3% in November and 2.7% over the prior 12 months.

Asia-Pacific markets were mixed Wednesday, after major Wall Street benchmarks declined Tuesday ahead of the data, while U.S. stock futures were near flat Tuesday night.

Back in Europe, Zara owner Inditex posted interim nine-month results, flagging that its revenues between Nov. 1 and to Dec. 9 jumped 9% from the same period of last year, on a constant currency basis.

Inditex revenues jump as holiday season kicks off

Zara owner Inditex posted interim nine-month earnings on Wednesday, flagging that its revenues between Nov. 1 and to Dec. 9 jumped 9% from the same period of last year, on a constant currency basis.

In the nine months to Oct. 31, sales in constant currency grew 10.5%, while gross profit picked up by 7.2% year-on-year to €16.3 billion ($17.16 billion).

Shares of the Spanish fashion giant, which is set to publish full-year results on March 12, are up almost 40% so far this year.

— Chloe Taylor

Auto giants endured a torrid 2024 — and few expect next year to be much better

A perfect storm of challenges for the European automobile industry shows no sign of letting up, analysts say.

Automakers have struggled to come to terms with a series of headwinds on the road to full electrification, including a lack of affordable models, a slower-than-anticipated rollout of charging points, intense competition from China, tougher carbon regulations and the prospect of targeted U.S. tariffs.

“Automotive stocks are having a hard time globally,” analysts at Deutsche Bank said in a research note published Dec. 9.

“Unfortunately, we believe the industry is likely to head into another year of volatility and headwinds across regions. We expect more noise of potential policy implications in the US, further restructuring announcements in Europe, muted demand ex China and pricing to soften,” they added.

— Sam Meredith

CNBC Pro: What’s behind Siemens Energy’s 300% rise this year — and what’s next?

Spun off from its parent company during the Covid-19 pandemic, Siemens Energy has been on a roller coaster over the past 18 months — from a near-death drop to a dizzying climb of over 310% this year.

Despite these gains, investors and analysts remain bullish on the company’s shares rising even further.

— Ganesh Rao

European markets: Here are the opening calls

European markets are expected to open in negative territory Wednesday.

The U.K.’s FTSE 100 index is expected to open 33 points lower at 8,244, Germany’s DAX down 52 points at 20,295, France’s CAC down 14 points at 7,372 and Italy’s FTSE MIB down 21 points at 34,524, according to data from IG.

Earnings are set to come from Inditex and OPEC releases its latest monthly oil market report Wednesday.

— Holly Ellyatt

Source : cnbc