Connect with us
Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Investing

European shares slip with U.S. inflation data in focus

European shares slip with U.S. inflation data in focus 1

By Shreyashi Sanyal

(Reuters) -European shares dipped on Tuesday as investors cautiously waited for key U.S. inflation data later in the week for hints on the Federal Reserve’s next move on interest rate increases.

The pan-European STOXX 600 index fell 0.3%, retreating after logging its best session in nearly two weeks on Monday.

Declines on Tuesday were led by economically sensitive sectors such as miners and autos, among top gainers in the previous session.

The STOXX 600 has floundered this month after climbing 7% in July on worries over dour economic data, rising geopolitical tensions and fears that higher interest rates could tip the economy into a recession.

“Investor sentiment has improved with the strong rally in July. But for the rally to continue, economic and earnings outlooks will need to stabilize – which is not likely,” said Patrick Armstrong, chief investment officer at Plurimi Wealth LLP in London.

“Risk assets will become more dependent on economic data now that the oversold conditions have dissipated.”

Investors now await an inflation reading from the world’s biggest economy on Wednesday after a surprisingly strong employment data dented hopes that the Fed might go easy in its series of rate hikes aimed at tackling surging inflation.

Swiss duty-free retailer Dufry rose 2.9% to the top of the STOXX 600, as it said it saw strong sales momentum continue in July despite the soaring inflation.

Germany’s Continental said it expects a rise in auto production in the second half of the year as supply chains stabilise and availability of semiconductors improves, but shares of the company slipped 0.8%.

Sanofi slipped 1.2% to the bottom of France’s CAC 40 as the drugmaker paused its recruitment globally for late-stage studies of its multiple sclerosis drug.

(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Sriraj Kalluvila)

Global Banking and Finance Review Awards Nominations 2022
2022 Awards now open. Click Here to Nominate

Advertisement

Newsletters with Secrets & Analysis. Subscribe Now