European stock markets edged higher on Monday, as investors assessed the potential for further monetary policy tightening ahead of key US inflation data and fresh quarterly Eurozone economic forecasts.[0] Wall Street equity futures also moved higher, helping to buoy sentiment on the continent.
Investors were also keeping a close eye on the latest German inflation data as well as the continuation of the quarterly corporate earnings season.[1] U.S. crude futures traded higher at $73.64 a barrel and the Brent contract rose 0.5% to $80.31.
However, the markets ended the day lower as uncertainties around inflation and further interest-rate hikes by the U.S. Federal Reserve weighed on investor sentiment. U.S. crude futures settled up $1.66 at $79.72 a barrel, while Brent rose $1.89 to close at $86.39.
The yen moved higher following the formal nomination of Kazuo Ueda as the next Bank of Japan governor, as traders increased bets that the BOJ’s yield-curve control and negative-rate policies may be abolished soon. The yen rose against most Group-of-10 currencies, as the Japanese government was set to appoint Ueda as the central bank’s next governor.
0. “European Shares Retreat On Rate Worries” RTTNews, 10 Feb. 2023, https://www.rttnews.com/3343402/european-shares-retreat-on-rate-worries.aspx
1. “European stock futures higher; German CPI, Credit Suisse in focus By Investing.com” Investing.com, 9 Feb. 2023, https://www.investing.com/news/stock-market-news/european-stock-futures-higher-german-cpi-credit-suisse-in-focus-2998947