European stocks open cautiously as November trading begins

European equities began the new month on a quiet note, with the region's main benchmarks showing only modest moves in early trade. A difficult close to October set the tone, and investors remain uneasy about AI spending, the path for key central banks and rising inflation. The early moves were as follows:

• Eurostoxx unchanged
• Germany's DAX down 0.2%
• France's CAC 40 down 0.2%
• UK's FTSE down 0.3%
• Spain's IBEX up 0.6%
• Italy's FTSE MIB up 0.1%

The IBEX appeared to be staging a modest rebound today, offering a small respite after last week's miserable run. Spanish equities had been hit hard by the fallout from Brazil's surprise election result, and big lenders including Santander and BBVA had faced heavy selling. Those early gains provide a measure of relief, but there is still considerable ground to recover.

Elsewhere in Europe, buying appetite is thin. Investors are still steadying themselves after last week's slide, which hit technology stocks particularly hard.

A firmer tone in US futures today has not yet fed through into a wider improvement in risk appetite. S&P 500 futures have gained 0.3% and Nasdaq futures 0.7%, with technology names leading the rebound for the moment. This follows Friday's sharp selloff, and there are still many questions about the scale of AI spending commitments and whether those outlays will ultimately produce solid returns. Those doubts are unlikely to fade quickly.

Central bank meetings are still on the calendar this week, with decisions due from the RBA and the BOE. The data schedule also includes euro-area inflation figures and the US jobs report. Before those items come into view, however, the bigger focus will be tomorrow's US midterm elections.

All of that should keep traders busy as November gets going.