10 Things You Need To Know Before European Markets Open
Greece's Politicians Might Prompt A Snap Election. Greece's parliament will begin voting on the government's presidential candidate at about 11 a.m. GMT. A super-majority of 180 legislators is needed (out of 300), but the government only managed 168 in favour at the last ballot. If the vote fails, Greece will move to a nationwide snap election which could have huge consequences for Europe.
Germany's Central Bank Chief Is Pushing Back Against More Easing. In an interview with a German Sunday newspaper, Bundesbank boss Jens Weidmann expressed irritation at pressure to start a quantitative easing (QE) programme, and said Europe's growth was not as bad as some people believed. The ECB is expected to start a QE programme early this year.
South Korea Is Proposing To Resume Talks With The North. South Korea proposed on Monday to resume stalled talks with North Korea, an overture that comes amid heightened diplomatic tension after Seoul's key ally the United States blamed the North for a cyberattack on Sony Pictures.
A Missing AirAsia Plane Is Thought To Have Crashed Near An Indonesian Island. An AirAsia plane that went missing during a flight to Singapore is thought to have crashed near the Indonesian island of Belitung, an official from Indonesia's National Search and Rescue Agency told local news outlets. AirAsia shares fell about 8% in Malaysia on Monday.
Sony Made $15 Million (£9.63 Million) In Online Sales Of The Interview In Its Opening Weekend. Sony announced Sunday night that "The Interview" was downloaded or rented online more than 2 million times, generating over $15 million in sales. Sony had initially pulled the film from general release after the company was hacked.
Foreign Investors Are Losing Faith With Abenomics. According to Bloomberg, foreign investment inflows into Japanese stocks dropped by 94% in 2014, in comparison to 2013. April 2013 alone registered three times more investment than the whole of 2014.
But International Investors Are Flooding Towards US Equities. International investment in US exchange-traded funds was the strongest in six years in 2014, according to the Financial Times. In comparison, flows into European funds were far weaker than in 2012 and 2013.
Ukraine Just Passed An Austerity Budget. In a late-night legislative session, Ukraine's politicians passed a budget with significantly higher import taxes, attempting to close the country's fiscal deficit. Kiev was under pressure to pass a budget to unlock the latest round of IMF funding.
Asian Markets Are Mixed. Japan's Nikkei closed down 0.50% on Monday, while Hong Kong's Hang Seng is currently up 1.76% just ahead of the close. China's Shanghai Composite index is close to flat, up just 0.04%.
The Dallas Fed's Manufacturing Index Is Coming. Economists estimate this regional manufacturing index slipped to 9.0 in December from 10.5 in November. The confirmed figure will be out at 3.30 p.m. GMT.