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European markets were lower on Monday amid persisting jitters over the global economy and a surging U.S. dollar.
The pan-European Stoxx 600 index was 0.58% lower at 12:45 p.m. London time, with most sectors in negative territory.
Regional markets closed lower last Friday, as investors reacted to the latest U.S. jobs data that showed nonfarm payrolls were up by 256,000 last month — much more than the 155,000 forecast by economists polled by Dow Jones.
The data subdued sentiment among global markets as it raised concerns that the U.S. Federal Reserve would proceed with caution when it comes to further interest rate cuts.
Investors in the region will continue to keep an eye on euro zone and U.K. government bond yields this week after yields climbed to fresh multi-month highs last week.
Global markets will also be focused on the U.S.' December consumer price index on Wednesday morning, after the December producer price index report on Tuesday.
U.S. stock futures ticked lower early Monday, while Asia-Pacific markets traded lower overnight.
Gilt yields higher with UK borrowing costs in focus
— Jenni Reid
Markets are re-appraising the UK’s economic prospects, former chancellor says
The U.K.'s former Chancellor of the Exchequer, Philip Hammond, discusses the recent spike in U.K. borrowing costs and the fiscal challenges facing the British government.
U.S. dollar surges
The U.S. dollar index — which measures the greenback against a basket of rivals — hit its highest level in more than two years on Monday, following a hotter-than-expected jobs report out of the United States last week.
By 10:30 a.m. London time, the dollar index was up 0.3% to trade at 110, its highest price since Nov. 2022.
— Chloe Taylor
UK corporates plan cost-cutting measures in 2025, Deloitte says
In its most recent survey of Chief Financial Officers (CFOs), accounting giant Deloitte found that U.K. corporates are looking to cut costs as they grapple with rising National Insurance payments — with staffing costs among those facing the chopping block.
Polled between Dec. 3 and Dec. 16, CFOs reported the sharpest decline in hiring expectations since the Covid-19 pandemic, while their business confidence fell to a two-year low.
— Chloe Taylor
Novartis’s U.S. patent for Entresto upheld
Scott Olson | Getty Images News | Getty Images
The U.S. Court of Appeals has ruled the patent for Novartis's heart medication Entresto is valid, the Swiss pharmaceutical giant said on Monday.
The ruling reverses a 2023 decision by a U.S. District Court in Delaware.
Novartis said Entresto's pediatric exclusivity period will expire in July this year.
— Chloe Taylor
UK’s Starmer lays groundwork for a homegrown OpenAI rival
Britain's Prime Minister Keir Starmer looks on on the day of the European Political Community Summit at the Puskas Arena, in Budapest, Hungary, November 7, 2024.
Marton Monus | Reuters
British Prime Minister Keir Starmer announced on Monday that his government is aiming to increase public sector compute capacity by twentyfold before the end of the decade, as the U.K. seeks to build a homegrown OpenAI rival.
Starmer's government is also looking to expand data center capacity across Britain to allow powerful AI model's developers to train and run their systems.
— Chloe Taylor
CNBC Pro: LA fires could hit European insurance giants with about billion euros in losses
The wildfires around Los Angeles are set to cost European insurance giants up to a billion euros in payouts this year.
At least seven European listed reinsurance firms are expected to bear about a billion euros ($1.02 billion) of the losses over the wildfire, according to analysts at German investment bank Berenberg.
In addition, JPMorgan analysts have identified at least 2 Japanese firms that are likely to be on the hook for payouts.
CNBC Pro subscribers can read more here.
— Ganesh Rao
European markets: Here are the opening calls
European markets are expected to open in mixed territory Monday.
The U.K.'s FTSE 100 index is expected to open 22 points lower at 8,227, Germany's DAX down 37 points at 20,182, France's CAC down 11 points at 7,413 and Italy's FTSE MIB down 143 points at 34,999, according to data from IG.
There are no major earnings or data releases Monday.
— Holly Ellyatt
English (US)