Europe Market Open: APAC subdued following soft Chinese inflation

APAC stocks began the week mostly subdued following the recent China fiscal stimulus disappointment and softer-than-expected Chinese inflation data.
European equity futures are indicative of a positive cash open with the Euro Stoxx 50 future +0.4% after the cash market closed lower by 1.0% on Friday.
German Chancellor Scholz said he wouldn't have a problem with a vote of confidence before Christmas.
DXY is steady and just above the 105 mark, EUR/USD is little changed on a 1.07 handle, JPY lags its major peers.
Looking ahead, today sees a lack of tier 1 highlights. Note, today is Veterans Day in the US.

SNAPSHOT

US TRADE

EQUITIES

US stocks were bid on Friday in which the SPX briefly rose above 6k before paring into the closing bell with advances led by Utilities, Real Estate and Consumer Staples although the Nasdaq was the relative underperformer as Tech and Communication lagged. Price action in markets was primarily categorised by post-election trade as participants continued to react to the Trump win and the dollar resumed to the upside after weakness the day before although T-notes continued to flatten after the steepening seen on Trump's victory.
SPX +0.38% at 5,996, NDX +0.07% at 21,117,DJIA +0.59% at 43,989, RUT +0.71% at 2,400.
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NOTABLE HEADLINES

Fed’s Kashkari (2026 voter) said if growth and productivity are strong, the Fed may not cut as much, while he reiterated that housing inflation will take a while to come down all the way and they have made progress but want to get the job done on inflation. Kashkari also stated that the Fed wants to have confidence inflation will go all the way back to 2% and need to see more evidence before deciding on another cut.
Edison Research projected Republicans won another seat in the US House bringing their total to 213, while Democrats have 204 seats with 218 needed for control.

APAC TRADE

EQUITIES

APAC stocks began the week mostly subdued amid China-related headwinds following the recent fiscal stimulus disappointment and softer-than-expected Chinese inflation data from over the weekend.
ASX 200 was dragged lower by weakness in the commodity and consumer-related sectors.
Nikkei 225 traded indecisively but with the initial downside cushioned alongside currency weakness.
Hang Seng and Shanghai Comp were pressured with underperformance in Hong Kong amid losses in property and tech although some chipmakers were boosted after the US ordered TSMC to halt shipments to China of chips used in AI applications. Elsewhere, the mainland traded cautiously after last Friday's announcement of fiscal measures disappointed those hoping for a more forceful stimulus in the aftermath of the Trump election victory, while Chinese CPI and PPI data were softer-than-expected and showed a worsening of the factory-gate deflation.
US equity futures (ES +0.2%) remained afloat in quiet trade after recently printing fresh record highs.
European equity futures are indicative of a positive cash open with the Euro Stoxx 50 future +0.4% after the cash market closed lower by 1.0% on Friday.

DXY kept to within a tight range amid a lack of major US-specific drivers and with attention this week on the latest US CPI report, while there were recent comments from F

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