RTTNews - The major markets across Europe are expected to open lower on Monday, mirroring the losses on Wall Street last week as traders digested a slew of economic data that added to investor uncertainty about the outlook for the markets. Weak trading across the Asian markets barring India, where trading has been halted as the upper circuit limit is hit following buoyant victory for the ruling Congress Party in the elections, might also weigh on the European markets at the open.
In the U.S, the Labor Department said its consumer price index was unchanged in April after edging down by 0.1 percent in March. The lack of growth in consumer prices came in line with the expectations of economists. Additionally, a report from the Federal Reserve showed a slightly smaller than expected 0.5 percent decrease in industrial production in April, while the Reuters/University of Michigan Consumer Sentiment index rose to 67.9 in May from 65.1 in the previous month.
The Dow closed down 62.68 points or 0.8% at 8,269, the Nasdaq closed down 9.07 points or 0.5% at 1,680.14 and the S&P 500 closed down 10.19 points or 1.1% at 883.
Markets across the Asia-Pacific region are trading in negative territory, mirroring the losses on Wall Street and increasing concerns over a sharp drop in earnings, the spread of the swine flu, lower crude oil prices and a stronger yen.
On Friday, the markets in Europe closed in positive territory, led by a smart rally in banking stocks and increasing optimism that recession in the world's largest economy is showing signs of easing.
The FTSEurofirst 300 index of pan-European blue chips closed 0.51% higher at 840 points, while the narrower DJ Stoxx 50 index rose 0.26% to 2,055 points. France's CAC 40 index rose 0.40% to 3,169, while the U.K.'s FTSE 100 index fell 0.33% to 4,348 and Germany's DAX index declined 0.02% to 4,737.
On the economic front, the Eurostat is slated to release the trade data for March in the Eurozone. The Eurozone trade deficit is seen at EUR 0.3 billion in March, smaller than the EUR 2 billion deficit reported in February. On a seasonally adjusted basis, the trade deficit is expected to fall to EUR 3.8 billion from EUR 4 billion.
In corporate news, banking stocks might be under the focus after a report in the Wall Street Journal revealed that the third biggest bank in the U.K., Barclays Bank, is in talks with Black Rock Inc. to sell its asset management unit. Also, Lloyds Banking Group announced that its Chairman Sir Victor Blank is planning to step down in June 2010.
Automobile stocks might also attract interest after research firm UBS AG raised the ratings of Daimler AG to buy from sell, stating that the second biggest maker of luxury cars in the world reportedly underperformed the sector during the year. The third largest truck-maker in Europe, Man AG reported that it has suspended Peter Erichreineke from the management board of the company's commercial vehicle division following preliminary investigations against him. Additionally, Volkswagen stated that it has called off the discussions for a possible combination with sports car manufacturer Porsche SE.
Aegis Group plc (AGS.L) reported that group revenue for the first quarter of the fiscal year grew 6.5%, including a significant exchange rate benefit. Revenue was up 4.8% at Aegis Media and up 9.6% at Synovate gross revenue, while net revenue was up 10.9%.
Mitie Group Plc (MTO.L) reported profit attributable to equity holders of GBP 53.1 million or 16.5 pence per share for fiscal 2009, compared to GBP 45 million or 14.1 pence per share last year. Profit for the latest year rose to GBP 54.4 million from GBP 47.3 million in the previous year. Excluding other items, the company posted profit of GBP 56.2 million, in comparison with GBP 49.2 million in the former year. Yearly revenues surged up to GBP 1.52 billion from GBP 1.41 billion in the prior year.
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