LIVE MARKETS-Before the bell: European futures bounce back

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BEFORE THE BELL: EUROPEAN FUTURES BOUNCE BACK

European shares were set to recover on Monday even as Asian shares and Wall St futures fell on worries over a possible economic slowdown in the world's largest economy.

President Donald Trump at the weekend declined to predict whether the US could face a recession amid market concerns about his tariff actions, saying "there is a period of transition".

But EuroSTOXX50, DAX and FTSE futures rose 0.2-0.8% following losses on Friday that ended a 10 week winning streak. Contracts on the S&P 500 instead declined 0.5%.

Premarket indications pointed to more gains for aerospace and defence stocks, with EU finance ministers set to discuss how to pay for defence and bullish brokers pushing for the sector.

"We are at the dawn of a decade-long rearmament cycle, which will drive medium-term earnings growth.. at a level incomparable with the past 30 years," wrote Berenberg in a sector note.

Meanwhile, building deflationary pressures in China added to growth worries from a lacklustre U.S. economy. The Hang Seng .HSI in Hong Kong slumped 2%.

In European corporate news, Volkswagen's truck unit Traton 8TRA.DE guided for a tepid commercial vehicle market in 2025 after weakness in Europe weighed on last year's results.

In M&A, Assura AGRP.L received non-binding proposal from KKR KKR.N and Stonepeak valuing the UK healthcare real estate investment trust at 1.61 billion pounds.

(Danilo Masoni)

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