European stocks tread cautiously amid inflation data
Date
5/27/2024 5:55:19 AM
(MENAFN) At the onset of the trading week, European stocks experienced a slight dip, reflecting investors' ongoing cautious stance ahead of crucial inflation figures expected from both the US and Europe later in the week. The European Stoxx 600 index registered a marginal decline of 0.02 percent by 07:13 GMT, setting a subdued tone for trading activities.
With the United States and Britain observing a public holiday on Monday, trading across all sectors remained lackluster. The anticipation surrounding forthcoming inflation data in the eurozone for May has notably influenced investor sentiment, particularly in light of the impending European Central Bank (ECB) monetary policy meeting scheduled for the following week.
Market observers suggest a high likelihood, around 90 percent, of the ECB initiating interest rate cuts at the upcoming meeting. Weak inflation figures for May could potentially bolster the case for such monetary policy adjustments, potentially prompting a rate cut as early as June.
Meanwhile, investors are also closely monitoring the release of US inflation data scheduled for Friday. This data holds significance as it could provide valuable insights into the potential timing of interest rate cuts by the US Federal Reserve throughout the year, thereby shaping market expectations and influencing trading strategies.
In the realm of corporate news, attention was drawn to the performance of salmon production company Backafrost, which spearheaded declines on the STOXX 600 index with a notable 4.5 percent decrease. This downturn followed the unsettling discovery of the infectious salmon anemia virus on a farm operated by the company, underscoring the potential market impact of unexpected developments within individual sectors.
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