European markets opened mixed on Monday after reaching record highs last week. Investors were cautious as they awaited key economic data and corporate earnings reports.
The FTSE 100 in London opened slightly lower, while the DAX in Germany and the CAC 40 in France opened higher. The Euro Stoxx 50 index, which tracks blue-chip companies in the eurozone, was also trading higher.
Last week, European markets hit record highs as investors cheered strong corporate earnings and signs of a global economic recovery. However, concerns about rising inflation and interest rates have weighed on market sentiment in recent weeks.
Investors are now looking ahead to a slew of economic data releases this week, including inflation figures from the eurozone and the UK. They will also be closely watching a meeting of the European Central Bank on Thursday, where policymakers are expected to discuss their monetary policy stance.
In addition, several major European companies are set to report earnings this week, including luxury goods maker LVMH, German automaker Volkswagen, and French energy giant TotalEnergies.
Analysts say that while European markets have had a strong start to the year, there are still risks on the horizon. Inflationary pressures, supply chain disruptions, and geopolitical tensions could all weigh on market sentiment in the coming months.
Overall, investors are likely to remain cautious in the near term as they assess the impact of these factors on the European economy and corporate earnings. However, many analysts remain optimistic about the long-term outlook for European markets, citing strong earnings growth and a supportive monetary policy environment.