European Markets Expected to Open Lower Amid Fears Over US Deficit; EasyJet Earnings Ahead

European markets are expected to open lower on Thursday, tracking declines in Asia-Pacific and US markets, amid concerns over the US budget deficit. EasyJet is set to report earnings, while preliminary purchasing managers' index data will be released for France and the UK. The US stock futures are flat in overnight trading after a sell-off on Wednesday.

European markets are expected to open lower on Thursday, tracking declines in Asia-Pacific and US markets, amid concerns over the US budget deficit. The US stock futures are flat in overnight trading after a sell-off on Wednesday. The ongoing budget negotiations within the House Republicans, which have reached a significant deal concerning Trump's ambitious $3 trillion budget bill, have added to the market's uncertainty [3].

EasyJet is set to report earnings, which could provide some insights into the airline sector's performance. Preliminary purchasing managers' index (PMI) data for France and the UK will also be released, offering early indications of economic activity in these regions. The PMI data is crucial for assessing the health of the manufacturing and service sectors.

The European derivatives markets have been responding to recent tariff developments, with a focus on trading strategies and volatility trends. A recent episode of The European Market Brief, featuring guests from EUREX, Interactive Brokers, and SimCorp, discussed the impact of tariffs and the importance of diversification in current markets [1]. This information is pertinent to investors looking to navigate the volatile European markets.

Investors should also keep an eye on the earnings reports of Nvidia (NVDA) and Texas Instruments (TXN), which have positive Expected Surprise Prediction (ESP) figures. Nvidia is expected to report earnings on May 28, 2025, while Texas Instruments is slated to report on July 22, 2025. The Zacks Earnings ESP tool, which compares the Most Accurate Estimate against the overall Zacks Consensus Estimate, has shown a 70% success rate in predicting earnings surprises [2].

As the market awaits these developments, investors should stay informed and engaged with the evolving narrative of US fiscal policy. The ongoing budget negotiations highlight a critical juncture for US fiscal policy, with potential ramifications for economic stability and party unity. The ability of the GOP to unify behind a coherent budget strategy will be key to addressing the $4 trillion deficit.

References:

[1] https://theoptionsinsider.com/radio/eurobrief/the-european-market-brief-1-tariffs-trump-turmoil-decoding-market-impacts-on-european-volatility/
[2] https://www.nasdaq.com/articles/these-2-computer-and-technology-stocks-could-beat-earnings-why-they-should-be-your-44
[3] https://news.faharas.net/323522/house-republicans-reach-deal-on/