Tech Rebounds as European Markets Face Pressure

European equity markets and the Euro are under pressure to start the new trading week as France and other countries assess the aftermath of a weekend of violent protests. Meanwhile, AI stocks are bouncing back as traders go bargain hunting ahead of a shift in earnings season’s focus from Big Banks to Big Tech. NASDAQ futures are up 1.2%, while Dow futures are down 0.2%.

Economic data released this morning painted a mixed picture. Canadian consumer price inflation increased to 3.1% from 3.0%, but came in below the Street’s 3.2% forecast. In China, Q3 GDP growth (4.5% vs Street 4.4%), retail sales (1.1% vs Street 0.5%), and industrial production (5.5% vs Street 5.4%) all exceeded expectations. There are no major earnings reports this morning.

Overseas equity markets are mixed. In Asia, the Nikkei declined 0.6%, while the Hang Seng gained 0.5%. European markets are weaker, with both the DAX and FTSE down 1.3%.

In Commodities, energy prices are easing but remain elevated. Crude Oil is down 1.0%, holding above $100.00/bbl, while Brent Crude is down 1.5%, holding above $108.00/bbl. Gasoline is down 1.2%, remaining above $3.20/gallon. Gold is up 0.1% but continues to trade well below $4,200/oz, while Silver is up 0.8%. Copper is down 0.2%, slipping below $6.60/lb.

In Currencies and fixed income, the US Dollar Index is up 0.2%, with the Euro down 0.2% and the Loonie up 0.3%. US Treasury yields are steady, with the 10-year note near 5.10% and the 30-year bond near 5.40%.

Looking ahead, the People’s Bank of China meets Tuesday morning, with no change to interest rates expected. The economic calendar is relatively quiet until Friday, when Flash PMI reports and retail sales figures for Canada and the UK are due. Earnings season continues with 3M, General Motors, GE Aerospace, Netflix, and SpaceX on Tuesday; Thermo Fisher, Tesla, Meta Platforms, Texas Instruments, and Lam Research on Wednesday; Procter & Gamble on Thursday; and Rogers Communications on Friday.

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