European stock futures drop after weak China data and political risks

European stock futures point to a lower open after weak retail-sales data from China dampened Asian markets, with MSCI’s Asian equity gauge down for a second day. Chinese shares dropped after retail sales grew only 3%, missing forecasts of 5%, reflecting ongoing struggles in the world’s second-largest economy.

Investors in Europe remain cautious following France’s credit downgrade by Moody’s and ahead of a key confidence vote on German Chancellor Olaf Scholz. A loss could trigger snap elections, adding uncertainty to Germany’s faltering economy. Analysts warn new fiscal support may take time, leaving the European Central Bank to act in the interim.

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This tepid market sentiment comes as traders prepare for a critical week of central bank meetings, including the Federal Reserve, Bank of Japan, and Bank of England. Profit-taking on this year’s global equity rally of nearly 20% could add pressure.

Meanwhile, US stock futures were flat, and Bitcoin surged 3% to a new high, lifting crypto markets. Oil and gold held steady as traders monitored geopolitical and economic signals.