European markets head for choppy open ahead of euro zone inflation data

Soegeefx AppsEU MarketEuropean markets head for choppy open ahead of euro zone inflation data

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Jenni Reid & Holly Ellyatt@HOLLYELLYATT

LONDON — European stocks are expected to open in mixed territory Tuesday, with market participants looking ahead to the release of the euro zone’s latest inflation data.

The U.K.’s FTSE index is seen opening 19 points lower at 81,587, Germany’s DAX down 31 points at 18,288, France’s CAC 40 down 9 points at 7,566 and Italy’s FTSE MIB up 8 points at 33,891, according to data from IG.

The euro zone’s consumer price index for June will be closely watched for how it could affect the European Central Bank’s next decision on interest rates. Economists polled by Reuters expect the headline rate to dip to 2.5% from 2.6% in May.

Elsewhere on the data front, the British Retail Consortium said year-on-year shop price inflation in the U.K. fell to 0.2% in June from 0.6% in May, the lowest level since October 2021. The Bank of England is grappling with its own decision about when to start easing monetary policy, after U.K. headline inflation hit its 2% target.

Germany’s Ifo Institute said the business climate in the automotive industry “deteriorated slightly” in June, as it fails to gain momentum along with the wider economy.

British grocery group Sainsbury’s meanwhile reported 3% higher sales in a first-quarter trading statement.

Asia-Pacific markets mostly fell overnight, breaking ranks with Wall Street, which saw the Nasdaq Composite reach a new record on the back of tech stocks.

U.S. stock futures were little changed after the major averages closed higher to start the second half of 2024, as tech stocks outperformed.

Source : cnbc

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