European markets fluctuate after U.S. inflation data; ThyssenKrupp shares fall

U.S. stocks fell at Monday’s open after the January consumer price index, a measure of inflation, was slightly higher than expected.

The Dow Jones Industrial Average fell 87 points, or 0.26%. The S&P 500 slipped 0.52%, and the Nasdaq Composite ticked 0.80% lower. Treasury yields were also largely flat following the inflation report.

—Carmen Reinicke

Christian Bruch, CEO of Siemens Energy, speaks to CNBC’s Dan Murphy at the World Government Summit in Dubai.

German engineering and steel production company Thyssenkrupp was at the bottom of the pan-European Stoxx 600 index after reporting results of what its CFO described as a “challenging” first quarter.

The company reported a lower order intake and adjusted EBIT (earnings before interest and taxes) than the previous year, as forecast, and shares tumbled 6.2% at the start of trading.

— Hannah Ward-Glenton

The rate of unemployment in the U.K. remained unchanged at 3.7% in the three months to December, according to data released by the Office for National Statistics.

The rate remains close to the lowest level the country has seen in 50 years, which was 3.5% in the three months to August 2022.

British Finance Minister Jeremy Hunt said the figure was “an encouraging sign of resilience in our labour market” in a statement, Reuters reported.

— Hannah Ward-Glenton

Britain’s blue-chip FTSE 100 index will open 4 points up at 7,946, according to IG data, and Italy’s MIB will also make gains, up 7 points to 27,476. France’s CAC is set to slide 1 point to 7,212, while Germany’s DAX looks ready to drop 23 points to 15,384.

— Hannah Ward-Glenton

Investors will be watching for the closely-followed consumer price index data coming Tuesday morning.

The January data for the index, which gauges the pace of inflation through tracking changes in prices within a broad basket of items, is due at 8:30 a.m. Here’s what economists polled by Dow Jones expect:

• CPI will be up 0.4% compared with the prior month and 6.2% higher than the same month a year ago.
• So-called “core” CPI, which excludes food and energy, will be up 0.3% month-over-month and 5.5% higher than the same month one year prior.

Based on those expectations, the report could deliver some bad news. CNBC Pro subscribers can read more about how some market observers expect stocks to move based on what the latest data shows.

Beyond CPI, investors will also be watching for the latest bath of corporate earnings from consumer-focused names such as Coca-Cola and Airbnb. CNBC Pro subscribers can see what to expect for the entire week here.

— Alex Harring

The Japanese government nominated Kazuo Ueda for its next Bank of Governor, Reuters reported, citing documents that the government submitted to parliament.

The government also nominated Ryozo Himino and Shinichi Uchida for the deputy governor roles, the report said.

The Japanese yen was little changed following the reported nomination, and last traded at 0.2% stronger levels at 132.15 against the U.S. dollar.

– Jihye Lee

Investors have been flocking back into Chinese tech stocks amid China’s reopening and an easing of regulatory headwinds.

Morgan Stanley has doubled down on its “buy” call on one Chinese tech giant, and raised its price target on the stock. Its bullishness comes hot on the heels on a similar call by Goldman Sachs.

Pro subscribers can read more here.

— Zavier Ong

Yields are popping again.

“Markets are coming round to the threat that the Fed will maintain a ‘higher for longer’ stance if sequential pick-up in prices, despite the continued moderation in [year-on-year] inflation, is pronounced,” Vishnu Varathan, head of economics and strategy at Mizuho Bank, said Monday. He added there was also the threat of hot jobs data for January.

“This could underpin the run-up in UST yields, alongside a Greenback that is discernibly more buoyant (than it has been late-Jan into start-Feb); whilst continuing to dampen, if not drag, equities,” he added.

How can investors ride on higher yields? Here’s what the pros say.

CNBC Pro subscribers can read more here.

— Weizhen Tan