European Shares Set to Fall Ahead of CPI, Job Data: Markets Wrap
(Bloomberg) — European stocks look poised to open lower, a sign of caution before the release of data from eurozone inflation to US job openings later Tuesday.
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The Euro Stoxx 50 futures dropped 0.5%, with their US peers also slipping. The weak tone comes in contrast with the modest gains in Asian shares that were mostly driven by a rise in chip-related stocks. The strength in the semiconductor sector came after Nvidia Corp. chief Jensen Huang unveiled new products that rekindled optimism over AI demand.
In the broader market, traders are still grappling with the prospect of rising trade tensions after Donald Trump denied a report that he might moderate plans for across-the-board tariffs when he retakes the White House. Washington’s latest move to blacklist some Chinese companies, including tech behemoth Tencent Holdings Ltd., is another reminder of the growing frictions that may further darken the outlook for the world’s No. 2 economy.
Tencent fell as much as 8%, with Contemporary Amperex Technology Co. down over 6% after the Pentagon included them in a list that labeled several Chinese firms military entities.
The yen was also in focus. It regained some ground after Japanese Finance Minister Katsunobu Kato said he will take appropriate action against what he considers one-sided, sudden foreign exchange moves. The currency dropped 0.1% to 157.80 per dollar after falling to 158.42, its weakest since July.
“Asia strength today is being led by tech and semis in Japan and Taiwan, with sentiment helped by last night’s SOX strength,” said Kieran Calder, head of equity research for Asia at Union Bancaire Privee.
During his speech, Nvidia’s Huang announced updated GeForce graphics processors for gaming PCs, part of a keynote presentation that’s expected to include a wide swath of new products.
An index of dollar strength has pared losses after Trump’s denial. The US currency fell as much as 1% Monday before narrowing the loss to 0.6%. It fell slightly on Tuesday.
Treasuries edged higher in Asia after the yield on the 30-year note climbed to the highest in more than a year on Monday, while that on the benchmark 10-year paper rose three basis points to 4.63%.
The Canadian dollar turned flat after advancing following Prime Minister Justin Trudeau’s resignation as head of the Liberal Party.
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