European Markets Seen Opening Weak On Monday

(RTTNews) - Weak sentiment is expected to prevail in stock markets in Europe on Monday as markets grapple with the uncertain trade tariff environment after the U.S. Supreme Court's ruling to strike down President Trump's sweeping reciprocal tariffs. Market sentiment is also expected to be impacted by the U.S.-Iran tensions. Corporate earning updates are also expected to sway sentiment.

Wall Street had closed on a positive note on Friday amidst the U.S. Supreme Court ruling that struck down a large portion of President Trump's global tariffs. The Dow Jones Industrial Average gained 0.47 percent to finish trading at 49,625.97. The tech-heavy Nasdaq Composite rallied 0.90 percent to close trading at 22,886.07.

European markets closed near record highs on Friday as markets cheered the U.S. Supreme court's ruling on tariffs. France's CAC 40 jumped 1.4 percent to close at a record high. The pan-European Stoxx-50 rallied 1.2 percent to a fresh peak. Germany's DAX gained 0.87 percent. U.K.'s FTSE 100 added 0.56 percent and closed at an all-time high. Switzerland's SMI also recorded an addition of 0.44 percent in Friday's trading to close slightly below a record high.

Current indications from the European stock futures indicate a mixed sentiment. The CAC 40 Futures (Mar) is trading 0.19 percent higher. The FTSE 100 Futures (March) is trading 0.21 percent lower. The pan-European Stoxx 50 Futures (Mar) stood 0.49 percent lower. The DAX Futures (Mar) is trading 0.70 percent lower. The SMI Futures (Mar) closed 0.27 percent higher on Friday. American stock futures are trading in negative territory implying renewed anxiety surrounding the trade tariffs scenario. The weak GDP print as well as the sticky core PCE inflation has also dampened sentiment. The US 30 (DJIA) is trading 0.61 percent lower, whereas the US500 (S&P 500) is trading 0.73 percent below the flatline. Asian stock markets are trading on a mixed note. Hong Kong's Hang Seng has surged 2.20 percent. DJ New Zealand has gained 0.50 percent. India's Nifty 50 is trading 0.40 percent above the flatline. South Korea's KOSPI has edged down from the flatline. Australia's S&P ASX 200 has dropped 0.6 percent. Markets in Japan as well as China are closed on a holiday.

The Dollar Index, a measure of the U.S. dollar's strength relative to six currencies, is currently trading at 97.48, slipping 0.33 percent from 97.80 at the previous close. The EUR/USD pair is trading 0.31 percent higher at 1.1818 whereas the GBP/USD pair has rallied 0.24 percent to trade at 1.3516. The USD/CHF pair has slipped 0.40 percent to trade at 0.7728. The EUR/GBP pair is trading 0.07 percent higher at 0.8744. Amidst demand for the safe haven Japanese yen, the EUR/JPY pair has slipped 0.11 percent to 182.50 and the GBP/JPY pair has slipped 0.18 percent to 208.73.

Ater a strong surge on Friday, gold prices have extended gains from Friday's closing level of $5,080.90. Gold Futures for April settlement are currently trading at $5,177.41, jumping around 1.9 percent from the previous close amidst the renewed uncertainty surrounding the tariffs environment.

Both the crude oil benchmarks are trading well below the flatline as markets assessed the likelihood of a U.S.-Iran nuclear deal. Brent Crude Futures for May settlement is trading at $70.60, around 0.98 percent lower than $71.30 at close on Friday. WTI Crude Futures for April settlement is currently at $65.74, around 1.11 percent lower than $66.48 at the previous close.

Among economic data releases due from the region are IFO Business Climate for February from Germany as well as Producer and Import Prices report for January from Switzerland. Markets would also be looking out for monetary policy hints from European Central Bank President Christine Lagarde's speech later on Monday.

Major updates to earnings due from the region on Monday include Bonheur, Belimo Holding, Hella, Itissalat Al-Maghrib, Banca Popolare di Sondrio, Gerdau etc.