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European Stock Futures Lower After China’s Latest Attack on Tech

European Stock Futures Lower After China’s Latest Attack on Tech

26 Jul 2021

European stock markets are expected to open lower Monday, after a negative lead from Asia that reflected dismay at China’s latest move against technology companies.

At 2:05 AM ET (0605 GMT), the DAX Futures contract in Germany traded 0.4% lower, CAC 40 Futures in France dropped 0.4% and the FTSE 100  Futures contract in the U.K. fell 0.4%.

European markets have had a negative handover from Asia Monday after the Chinese government continued its regulatory clampdown, releasing plans over the weekend to reform the $100 billion education sector, one of the country’s most desired investment plays in recent years.

Attention for much of this week is likely to turn further west, with the Federal Reserve, set to hold a two-day policy meeting, concluding on Wednesday, which could see the U.S. central bank announcing when it plans to start scaling back its hefty asset-purchasing program.

Additionally, this week is scheduled to be one of the busiest for earnings reports, with Tesla  due after the close Monday, and then the big tech giants Apple , Alphabet  and Microsoft  on Tuesday, while Facebook  and Amazon  report later in the week.

Back in Europe, Ryanair  will be in the spotlight after Europe’s largest low-cost carrier raised its forecast for full-year traffic on strong summer bookings as it reported a smaller first-quarter net loss than expected. That comes against a backdrop of data that suggest the latest wave of Covid-19 cases was close to peaking in the U.K. before it lifted restrictions on social distancing last week. The seven-day average for case numbers has fallen over 20% in the last week.

The FTSE MIB climbed up by 0.52% to 24,993.82. In the cash markets, the DAX  Germany was trading down 0.69%  to 15,559.17. CAC 40  in France fell by 0.44% to 6,524.60 while the FTSE 100  in the U.K. were up by 0.44% to 6,996.88. ,at the time of writing.