European stocks fall as markets turn to Fed, U.S. inflation

11 Haziran 2024 13:46



The Stoxx 600 index initially shook off Monday’s negative sentiment but soon slipped back into the red, trading 0.7 percent lower at 11 a.m. in London. Sectors were all lower, with banks down 1.5 percent.

British computing startup Raspberry Pi rose 39 percent at its debut on London’s main exchange.

Shares in beleaguered French IT company Atos fell nearly 12 percent after the firm announced a rescue deal that will dilute existing shareholders.

U.K. employment data released Tuesday showed the number of payrolled employees was up 0.6 percent year on year in May, but the unemployment rate ticked higher to 4.4 percent from 4.3 percent on a quarterly basis.

Annual wage growth, excluding bonuses held at 6 percent over the three months from February to April, presents a potential concern for the Bank of England as it considers when to reduce interest rates.

Regional markets fell on Monday as traders reacted to the EU Parliament elections and French President Emmanuel Macron’s decision to call a snap election after the right-wing National Rally party made strong gains.

Market attention is shifting to the U.S. Federal Reserve’s latest rate decision and May’s consumer price index, which will be released Wednesday. The U.S. inflation data could be a key market test, especially after Friday’s strong jobs report continued to suggest the central bank could hold off on lowering rates.

Investors will be closely monitoring the Fed’s updated projections on the timing and frequency of rate cuts, known as the “dot plot.” Markets are now pricing in just one rate cut this year, in November, according to the CME FedWatch Tool.

Albania News Agency

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