European Shares Seen Higher At Open

BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks are likely to open higher on Monday as investors ponder whether tech stocks can keep supporting their lofty valuations and heavy AI spending may translate into profits as quickly as once expected.

A host of economic data, including U.S. reports on employment, consumer price inflation and retail sales will also be in the spotlight this week.

These reports, delayed by the government shutdown, will shed additional light on the economic and rate outlook.

Among the central bank decisions due this week, the Bank of Japan is expected to raise rates by 25 basis points, while the Bank of England is poised to cut its benchmark interest rate by another quarter point.

The European Central Bank is expected to keep interest rates on hold, alongside Sweden's Riksbank and Norway's Norges Bank.

Asian markets were mostly lower as investors reduced exposure to tech stocks on doubts over the AI rally.

China Vanke failed to get approval from bondholders to extend repayment obligation by one year for an onshore bond, raising fresh concerns over credit risk in the country's property sector.

China's November retail sales missed estimates, investment and industrial output growth fell short of expectations, and falling housing prices showed no signs of slowing down, suggesting the country's economic recovery is losing momentum.

The dollar nursed losses in Asian trade while gold climbed for a fifth day running amid the prospect of interest rate cuts by the Federal Reserve next year.

Oil edged higher after Imperial Oil issued a fire alert at its 120000 barrel-per-day refinery facility in Ontario, Canada, and Ukrainian forces targeted the Afipsky oil refinery in Russia's Krasnodar region, causing significant damage.

Meanwhile, U.S. special envoy Steve Witkoff said 'a lot of progress was made' at talks on Sunday in Berlin to end the Ukraine war.

U.S. stocks ended deep in the red on Friday as investors continued to book profits from high-flying names linked to the artificial intelligence trade on valuation concerns.

Higher Treasury yields also dented sentiment after Chicago Federal Reserve President Austan Goolsbee said he is uneasy about 'too heavily front-loading rate cuts and just assuming that inflation will be transitory.'

The tech-heavy Nasdaq Composite plunged 1.7 percent amid a broader rotation from tech to value names. The S&P 500 lost 1.1 percent and the Dow dipped half a percent.

European stocks ended lower on Friday, failing to hold on to early gains after warnings by NATO Secretary General Mark Rutte that Europe must be prepared for war with Russia.

The pan-European Stoxx 600 gave up half a percent. The German DAX dropped half a percent, France's CAC 40 eased 0.2 percent and the U.K.'s FTSE 100 shed 0.6 percent.

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The BSE Sensex dropped 369 points, or 0.4%, to 84,898 in morning trade on Monday, while the Nifty 50 fell 0.5%, with both indices erasing a two-session gain amid ongoing foreign capital outflows.

Foreign investors sold shares worth INR 11.1 billion ($122.6 million) on Friday, according to provisional data, extending their selling streak to six consecutive sessions.

Lingering uncertainty over a US–India trade deal also weighed on sentiment.

Traders assessed November inflation after data released on Friday showed headline annual inflation accelerated to 0.71% from October’s record low of 0.25%, though it remained below the RBI’s 2% lower tolerance threshold.

However, traders anticipated the trade and unemployment data scheduled for release today.

Autos, financial services, technology, and metals mainly weighed on the index, with the biggest laggards being Mahindra & Mahindra (-1.6%), Bajaj Finserv (-1.2%), Tata Motors (-1.1%), Power Grid (-1.0%), and JSW Steel (-1.0%).

New Zealand's benchmark S&P/NZX 50 index closed flat at 13,408 on Monday, extending a subdued session from the previous week, as shares of industrial and technology services weighed on the index.

Ventia Services dropped 2.4%, while Gentrack Group lost 3.9%.

Energy minerals also faced downward pressure, with Channel Infrastructure declining 2.5%.

These declines were offset by notable gains for ikeGPS Group, which surged 4.8%, and KMD Brands, up 1.9%.

On the economic front, the Reserve Bank signaled it will likely keep the official cash rate unchanged for now.

Governor Anna Breman noted that while a slight chance of a near-term rate cut remains, tighter-than-expected financial conditions have tempered expectations for a rate hike next year.

Traders now look forward to a slew of data this week, including the Q3 GDP report.

New Zealand's benchmark S&P/NZX 50 index closed flat at 13,408 on Monday, extending a subdued session from the previous week, as shares of industrial and technology services weighed on the index.

Ventia Services dropped 2.4%, while Gentrack Group lost 3.9%.

Energy minerals also faced downward pressure, with Channel Infrastructure declining 2.5%.

These declines were offset by notable gains for ikeGPS Group, which surged 4.8%, and KMD Brands, up 1.9%.

On the economic front, the Reserve Bank signaled it will likely keep the official cash rate unchanged for now.

Governor Anna Breman noted that while a slight chance of a near-term rate cut remains, tighter-than-expected financial conditions have tempered expectations for a rate hike next year.

Traders now look forward to a slew of data this week, including the Q3 GDP report.

Indonesia’s IDX Composite edged up 17 points or 0.2% to 8,680 in early trade on Monday, swinging from the prior session’s weakness amid gains in consumer durables, healthcare, and commercial services.

A sharp rise in U.S. futures lifted sentiment after a subdued close on Wall Street Friday, as investors positioned ahead of delayed U.S. economic data.

On the domestic front, retail indicators signaled firmer spending momentum heading into the year-end holiday period.

However, strength was capped by caution ahead of Bank Indonesia’s final policy meeting later this week, even as the central bank is widely expected to keep rates unchanged for a third straight meeting.

In top trading partner China, November figures showed industrial output grew at its slowest pace in 15 months, and retail sales rose at a near three-year low, amid external and domestic headwinds.

Among early movers were Merdeka Gold Resources (11.0%), Kalbe Farma (3.9%), Bumi Resources (2.7%), and Indosat (2.5%).

Indonesia’s IDX Composite edged up 17 points or 0.2% to 8,680 in early trade on Monday, swinging from the prior session’s weakness amid gains in consumer durables, healthcare, and commercial services.

A sharp rise in U.S. futures lifted sentiment after a subdued close on Wall Street Friday, as investors positioned ahead of delayed U.S. economic data.

On the domestic front, retail indicators signaled firmer spending momentum heading into the year-end holiday period.

However, strength was capped by caution ahead of Bank Indonesia’s final policy meeting later this week, even as the central bank is widely expected to keep rates unchanged for a third straight meeting.

In top trading partner China, November figures showed industrial output grew at its slowest pace in 15 months, and retail sales rose at a near three-year low, amid external and domestic headwinds.

Among early movers were Merdeka Gold Resources (11.0%), Kalbe Farma (3.9%), Bumi Resources (2.7%), and Indosat (2.5%).