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European markets are heading for a negative open on Tuesday as investors in the region focus on the latest euro zone inflation data.
The U.K.'s FTSE 100 index is expected to open 40 points lower at 8,200, Germany's DAX down 87 points at 20,123, France's CAC down 33 points at 7,414 and Italy's FTSE MIB down 172 points at 34,696, according to data from IG.
Traders will be keeping a close eye on preliminary inflation data for the euro zone in December, as well as the bloc's unemployment rate in November.
Earnings are set to come from Next and Sodexo Tuesday, and data releases will include the U.K. Halifax house price index, French and Italian inflation figures and Italian unemployment data.
German inflation data released on Monday showed the country's consumer price index rose to a higher-than-expected 2.9% in December. Analysts polled by Reuters expected a 2.6% reading.
Regional markets traded higher at the start of the week as investors assessed a media report suggesting U.S. President-elect Donald Trump's tariff plan may not be as extreme as feared.
The Washington Post reported that Trump's team is considering a plan to impose tariffs on all countries, but only on "critical imports," although these were not specified. Trump later disputed the report in a Truth Social post.
Overnight, Asia-Pacific markets rose Tuesday, following Monday's rally in technology shares on Wall Street that saw the S&P500 and Nasdaq Composite post back-to-back gains. U.S. stock futures slipped on Tuesday morning, however.
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— Ganesh Rao
Oil and gas exploration stocks head for 10th straight advance in longest rally in almost five years
The SPDR S&P Oil & Gas Exploration & Production ETF traded higher on Monday, rising as much as 2% intraday, putting the ETF on pace for its 10th straight gain for the first time since April 2020.
The 55-stock XOP is up nearly 10% over the past 10 sessions, its best 10-day period since mid-October 2023. It was recently just up about 0.1%.
The longest rally ever for XOP was an 11-day advance that ended in November 2010. The exchange traded fund now has roughly $2 billion in assets, according to FactSet data. Its five largest positions are Antero Resources, APA Corp., Diamondback Energy, Occidental Petroleum and Coterra Energy.
Although XOP remains below its April 2024 52-week high, the ETF is moving above its 50-day moving average for the first time since early December.
SPDR S&P Oil & Gas Exploration & Production ETF over past year.
— Scott Schnipper, Nick Wells
Trump reportedly eyes narrower tariff plans, auto stocks jump
U.S. President-elect Donald Trump attends Turning Point USA's AmericaFest in Phoenix, Arizona, U.S., December 22, 2024.
Cheney Orr | Reuters
President-elect Donald Trump is reportedly planning to narrow his tariff plans to target only certain important sectors, instead of all imports, the Washington Post reported, citing people familiar with the matter.
Two weeks before he takes White House, Trump is discussing plans to pare back some of the sweeping, universal tariffs he vowed to implement on the campaign trail, the Post reported. Instead, he is aiming to impose duties on sectors that are viewed critical to national or economic security, the newspaper reported, adding that the discussions are not final.
Shares of automakers jumped in premarket in a relief rally. Ford and General Motors climbed more than 2% each, while Stellantis NV surged 7% in early trading.
— Yun Li
Sun, Jan 7 202412:00 AM EST
European markets: Here are the opening calls
European markets are expected to open lower Tuesday.
The U.K.'s FTSE 100 index is expected to open 40 points lower at 8,200, Germany's DAX down 87 points at 20,123, France's CAC down 33 points at 7,414 and Italy's FTSE MIB down 172 points at 34,696, according to data from IG.
Traders will be keeping an eye on preliminary inflation data in the euro zone in December, as well as the bloc's unemployment rate in November.
— Holly Ellyatt
English (US)