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At 03:40 ET (07:40 GMT), the DAX index in Germany traded 0.1% higher, the CAC 40 in France climbed 0.1%, while the FTSE 100 in the U.K. dropped 0.2%.
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.
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.
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.
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.
By 03:40 ET, the U.S. crude futures traded 0.2% lower at $82.62 a barrel, while the Brent contract dropped 0.2% to $86.08.
Both contracts recorded their sixth consecutive weekly gains last week, the longest winning streak since December 2021 to January 2022.
Additionally, gold futures fell 0.2% to $1,971.35/oz, while EUR/USD traded 0.2% lower at 1.0992.
