Investing.com - European stock markets traded in a mixed fashion Monday, weighed by German economic weakness as investors prepare for this week’s key inflation data.
German industrial production slumps in June
Sentiment has been hit Monday after data showed that German industrial production plunged 1.5% on the month in June, as the euro zone's largest economy was hit by a slowdown in global demand, particularly from China.
"A further drop in German industrial production in June is another illustration of the country's ongoing stagnation," analysts at ING said, in a note. "With today’s numbers, the risk has increased that the flash estimate of stagnating GDP growth in the second quarter could still be revised downwards."
European stocks also struggled last week as a downgrade in the U.S. sovereign rating, rising Treasury yields, and weak Chinese economic data dented the appetite for risk-driven markets.
Key inflation data in spotlight
That said, losses are limited as investors focus on a series of inflation figures during the week, amid growing expectations that the Fed and the European Central Bank are near the end of their tightening cycle.
German CPI data is due for release on Tuesday, as well as numbers from China, while data from the United States are scheduled for Thursday.
Siemens Energy stock rises despite hefty wind turbine hit
In Europe, the earnings season is slowing down, although Siemens Energy (ETR: ENR1n ) is in the spotlight after the German energy group said problems at its wind turbine unit would cost it €2.2 billion (€1 = $1.0989), resulting in an expected annual net loss of around €4.5 billion.
Still, the stock rose 3.9%, rebounding after an early hit, after the company posted strong growth in orders and revenue, and logged a record order backlog in its third-quarter earnings report.
PostNL (AS: PTNL ) stock soared over 7% after the Dutch postal firm lifted its 2023 operating profit guidance.
Across the pond, the focus will be on the entertainment sector with Walt Disney (NYSE: DIS ), News Corp (NASDAQ: NWSA ), and Fox (NASDAQ: FOX ) all expected to report tough conditions. Disney, in particular, has had a string of disappointing film releases, and its theme parks also seem to be struggling.
Crude steadies near four-month high
Oil prices edged lower Monday, but remained near their highest levels since mid-April after top producers Saudi Arabia and Russia announced plans late last week to extend output cuts for another month to tighten global markets further.
Both contracts recorded their sixth consecutive weekly gains last week, the longest winning streak since December 2021 to January 2022.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.