European markets prepare for lower opening ahead of key UK inflation data

On May 21, 2025, European equity markets anticipated a flat to lower opening amid mixed signals from the recent trading sessions. The expected movements were influenced by recent earnings reports and upcoming economic data, notably UK inflation figures. Investors braced for a publication of these figures at 7 a.m. London time, which typically has a significant impact on market sentiment and investment strategies. As the markets open, London’s FTSE index is projected to rise by a marginal 5 points, on the back of a positive trading session that had been witnessed on the previous day. In contrast, Germany’s DAX is anticipated to open just 1 point higher while the French CAC 40 and Italy’s FTSE MIB are expected to experience declines of 5 points and 27 points, respectively. Such predictions reflect the cautious investor sentiment which has gripped European markets, suggesting hesitation in risk-taking amid economic uncertainty. In the lead-up to this market opening, several key earnings reports were highlighted for the day, including reports from prominent companies such as Marks & Spencer (M&S), SSE, Currys, and JD Sports. These earnings figures are closely watched as they provide insights into company performance and could potentially influence market movements depending on how they compare to analysts' expectations. In a broader context, international market movements earlier in the week showed resilience from the Asia-Pacific region - with South Korea’s Kospi and Australia’s S&P/ASX 200 showing moderate gains. However, the Japanese market faced setbacks due to sluggish export figures attributed to complications from U.S. tariffs. This backdrop of international trade issues and mixed earnings results adds layers of complexity to the European market environment, where investors are keenly anticipating forthcoming data from the UK that could steer market direction significantly in the hours and days ahead.