Investing
STOXX 600 muted ahead of inflation data, eyes first monthly gain in three
Global Banking & Finance Review®
Company
(Reuters) – Europe’s STOXX 600 opened on a muted note on the final day of a turbulent week, with investors assessing France’s political uncertainty and awaiting euro zone inflation data to see if a bigger European Central Bank rate cut is on the cards for December.
The pan-European main stock index was flat at 0815 GMT, bracing for its fifth weekly decline in six.
The index was still on track for a modest monthly gain in three, even though the possibility of Europe being a U.S. tariff target and France’s political woes have dampened investor sentiment towards the bloc, among other factors.
France’s CAC 40 was largely flat on the day and down 1% for the week. Prime Minister Michel Barnier dropped plans to raise electricity taxes in his 2025 budget, bowing to far-right pressure.
French lenders weighed on the overall banks index, while basic resources led sectoral gainers, boosted by a 3% rise in miner Anglo American after a Jefferies rating upgrade.
Meanwhile, French inflation for November edged up from October, in line with expectations, while German retail sales fell more than expected in October.
Lower-than-expected euro zone inflation data during the day could prompt bets of a 50-basis-point European Central Bank rate cut in December.
(Reporting by Joao Manuel Mauricio in Gdansk; Editing by Janane Venkatraman)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured by the Consumer Price Index (CPI) or the Producer Price Index (PPI).
The European Central Bank (ECB) is the central bank for the euro and administers monetary policy within the Eurozone. Its primary aim is to maintain price stability and control inflation.
The STOXX 600 is a stock index that represents large, mid, and small-cap companies across 17 European countries. It serves as a benchmark for the European equity market.
A rate cut refers to a reduction in the interest rate set by a central bank. It is typically used to stimulate economic activity by making borrowing cheaper.
Investor sentiment refers to the overall attitude of investors toward a particular security or financial market. It is often influenced by news, economic indicators, and market trends.
Explore more articles in the Investing category
