European stocks mixed; investors digest gains ahead of key data and Fed meeting



Investing.com – European stocks traded subdued on Tuesday as traders remained cautious ahead of the release of key European inflation and growth data, more corporate earnings and the start of the latest Federal Reserve policy-setting meeting.

As of 03:25 ET (0725 GMT), shares in Germany were down 0.2%, France's were down 0.1%, and Britain's were up 0.3%.

Eurozone inflation, growth data due

March's rise exceeded expectations, rising 1.8% from the previous month, boosting the tone on Tuesday as it bodes well for the euro zone's largest overall economy.

However, gains were hard to find as investors awaited the latest inflation and growth data for the euro zone as a whole later in the session.

The central bank said it may cut the deposit rate in June, but there is still a high degree of uncertainty about how many more cuts, if any, this year it will make.

The Eurozone is initially expected to grow by 2.4% annually in April, still slightly higher than the European Central Bank's medium-term target of 2.0%. However, the region is expected to grow by only 0.1% in the first quarter, with an annual growth rate of only 0.2%.

The start of the latest two-day policy meeting will also weigh on volatility.

While the Fed is widely expected to keep interest rates on hold at this meeting, investors will be looking for guidance on the possibility of a rate cut later this year as inflation continues to remain sticky.

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European earnings season continues

European earnings season continues apace on Tuesday, with data from online retail giant Amazon (NASDAQ: ) also set to be studied after U.S. markets close.

Volkswagen AG (ETR: ) shares fell 2.2% after the German auto giant reported a 20% drop in first-quarter operating profit due to lower sales due to weak demand for its premium brands.

Shares of Mercedes-Benz (OTC: ) fell 2.5% after the German luxury carmaker also reported a 30% year-on-year drop in first-quarter profit.

Stellantis (NYSE: ) shares fell 1.7% after the French-Italian automaker said its first-quarter revenue fell 12%, partly driven by warnings that new models would support its second-half growth and earnings. Supported by confidence in ability.

Carlsberg (CSE: ) shares fell 1% after the Danish brewer's chief executive expressed caution about the trading environment, although it reported a slight rise in quarterly sales, driven mainly by 5% growth in China.

Air France KLM (OTC: ) shares fell 3.7% after the airline group reported a larger-than-expected first-quarter operating loss as it faces hefty customer compensation payments from Dutch carrier KLM A one-time payment made by the employee.

Crude oil prices stabilize, focus on peace talks between Israel and Hamas

Oil prices stabilized on Tuesday after falling in the previous session, as market focus remained on ceasefire talks between Israel and Hamas.

Futures were up 0.1% at $82.70 a barrel as of 03:25 ET, while the contract was up 0.1% at $87.32 a barrel.

Both benchmarks fell about 1% on Monday after peace talks between Israel and members of militant group Hamas in Cairo led traders to unwind some of their geopolitical risk premiums on oil prices.

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Concerns about supply disruptions in the Middle East have been a major driver of higher oil prices in recent weeks. But that idea has been tempered after the conflict between Iran and Israel did not turn into war.

Additionally, it fell 1.3% to $2,328.00 per ounce and traded down 0.1% to 1.0707.





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