Europe before the bell: Futures signal further weakness

EUROPEAN FUTURES POINT AT FURTHER WEAKNESS

Euro STOXX 50 futures (.STXEc1) are lower on Wednesday, signalling another soft start after the index fell to its lowest since Sept. 11 the day before.

Futures on the index are down 0.4% a 2.3% drop on Tuesday, its biggest daily drop since August.

Back in August, a weak U.S. payrolls report had markets fretting about the growth outlook and the dollar weakened, causing a huge unwind of yen-funded carry trades.

This time around, rising bond yields and concerns about China and President-elect Trump's new administration are weighing on sentiment.

In corporate news, Siemens Energy ENR, the biggest gainer in the DAX DAX this year, having risen more than threefold, looks set to add to those gains after it raised its mid-term guidance.

Just Eat Takeaway TKWY will also be in focus after the food delivery company struck a deal to sell its U.S. unit Grubhub to Wonder for $650 million, having acquired it in 2020 for $7.3 billion in an all-stock deal.

On the macro front, eyes will be on October U.S. consumer prices data, which is expected to show a slight uptick in annual headline CPI to 2.6% from 2.4% in September.

(Samuel Indyk)

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