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European markets retreat as investors watch inflation, monetary policy; SocGen up 4%

Soegeefx AppsEU MarketEuropean markets retreat as investors watch inflation, monetary policy; SocGen up 4%

Key Points

  • Global investors will be watching the U.S. consumer price index reading for March on Tuesday and producer price index on Wednesday for indications as to how drastically the Federal Reserve will have to act in order to rein in inflation.
  • European Central Bank policymakers will meet in Frankfurt on Thursday to discuss their next monetary policy move.
  • Investors will also be keeping an eye on developments in Ukraine. Russia’s invasion of the country has caused volatility in oil and other commodities markets, which has, in turn, disturbed stocks.

LONDON — European markets pulled back on Monday to begin a week of key central bank meetings and U.S. inflation prints.

TICKER COMPANY NAME PRICE CHANGE %CHANGE VOLUME
.FTSE FTSE 100 *FTSE 7632.88 -36.68 -0.48 21367313
.GDAXI DAX *DAX 14158.7 -124.97 -0.87 3156262
.FCHI CAC 40 Index CAC 6527.16 -21.06 -0.32 7151920

The pan-European Stoxx 600 slipped 0.7% in early trade, with tech stocks shedding 2% to lead losses as most sectors and major bourses slid into negative territory. Banks and insurance stocks eked out modest gains.

Societe Generale climbed 4.4% after agreeing to sell its stake in Russia’s Rosbank and the Group’s Russian insurance subsidiaries to Interros Capital, ceasing all activities in Russia.

At the bottom of the European blue chip index, Finland’s Nokian Tyres dropped more than 10% after announcing that new EU sanctions against Russian rubber will significantly impact its production.

Global investors will be watching the U.S. consumer price index reading for March on Tuesday and producer price index on Wednesday for indications as to how drastically the Federal Reserve will have to act in order to rein in inflation. Several Fed officials are set to speak on Monday and could further sway market momentum later in the day.

U.S. stock futures declined in early premarket trade on Monday as Wall Street comes off a losing week, with U.S. Treasury yields continuing to climb following a Friday jump that saw the benchmark 10-year yield hitting a 3-year high.

Earnings season also kicks off stateside this week, with banking giants JPMorgan, Goldman Sachs, Wells Fargo, Citi and Morgan Stanley all due to report.

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Chinese markets led losses in Asia-Pacific overnight as investors reacted to higher-than-expected Chinese consumer and producer inflation readings, with the latter surging 8.3% year on year as the country battles to contain its worst Covid-19 wave since the start of the pandemic.

Back in Europe, French President Emmanuel Macron and far-right challenger Marine Le Pen progressed through the first round of voting in the French presidential election and will enter a tightly contested run-off on April 24.

A Le Pen victory would be a jolt to France and Europe as a whole, likely offering markets further cause for concern.https://art19.com/shows/4420ff26-c17c-4c28-a654-a663d4bcbf60/episodes/3d555d10-9433-43f7-b595-7d2b8d656577/embed

Investors will also be keeping an eye on developments in Ukraine. Russia’s invasion of the country has caused volatility in oil and other commodities markets, which has, in turn, disturbed stocks.

European Central Bank policymakers will meet in Frankfurt on Thursday to discuss their next monetary policy move, faced with the tough task of weighing surging consumer prices against downward pressure on economic growth from the war in Ukraine.

Source : CNBC

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