Europe open: Shares edge higher ahead of US CPI, retail sales
European stocks edged ahead at the open on Monday with little corporate news to drive sentiment and ahead of US inflation data on Tuesday that was expected to signal the future path of interest rates globally as eyes turned skyward and the latest mystery airborne objects flying into American airspace.
The pan-European Stoxx 600 index was up 0.15% at 0830 GMT with all regional bourses higher. Geopolitical concerns were heightened as it emerged the US air force had shot down an airborne object near the Canadian border, the fourth downed this month.
Investors will also be eyeing US retail sales, while the inflation numbers will be analysed to see if inflation continues to slow. Analysts are forecasting headline and core consumer prices to rise 0.4% for the month, with sales rebounding by 1.6%.
“Mixed messages are resulting in mixed movements as investors ponder the continued resilience of the US economy,” said Interactive Investor head of markets Richard Hunter.
“A renewed spike in Treasury yields implied higher interest rates to come, taking some of the froth from the high growth companies which have seen renewed interest of late. Despite its poorest showing last week since December, the Nasdaq nonetheless remains ahead by 12% in the year to date, in an effort to wipe out the hefty losses of 2022.”
“Another important indicator later in the week revolves around the vital US consumer, as retail sales numbers are released. These are expected to have rebounded slightly and in a separate report US consumer sentiment improved further in February, despite the backdrop of inflationary pressure. Taken together, the inflation and retail sales prints are likely to dictate sentiment in the immediate short term.”
Reporting by Frank Prenesti for Sharecast.com