European stocks fall ahead of U.S. CPI data

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Investors on edge ahead of the U.S. CPI data!

On Thursday, European stocks fell as automakers and travel stocks went into a recent run of gains while investors counted on the European Central Bank to maintain an accommodative policy stance at a later meeting of the day.

The pan-European STOXX 600 index held around 0.1%, but dropped below record levels after a four-day rally.

The automakers fall for the third straight day, while the travel and leisure stocks are down on optimism over economic reopenings by 1.1% following recent gains for the sectors.

Volkswagen fell 2.8% after a report said it expects a shortage in semiconductor supply to ease in the third quarter but sees the bottlenecks continuing in the longer term.

The eurozone stocks were 0.2% before the European Central Bank's policy decision and its projection for euro zone economic growth and inflation are expected to progress. The statement is expected at 1145 GMT, followed by Christine Lagarde's news conference at 1230 GMT.

The meeting comes as long data from across the globe point to building inflationary pressures, particularly in commodities as economies recover from recent COVID 19 lockdowns.

The data have raised fears that major central banks will start to lose their strong stimulus programmes sooner than expected, but policymakers have been boosting the demand until signs emerge of a massive labour market recovery.

Neither ECB nor the ECB will be convinced that the time is ripe to slow the market of purchases, a view supported also by the recent dovish shift in the ECB’s media relations, analysts wrote in a note for RBC Capital Markets.

The Eurozone inflation last month exceeded the target of the central bank of just under 2%, a mark it has undershot for most of the last decade.

Another live reading, U.S. consumer prices data for May, will be released later in the day.

FTSE 100 of Britain inked a 3.2% increase in the Altice Group after UK's largest broadband and mobile operator, BT Group, said it had a 12.1% stake in UK's biggest gaming company.

It fell 11.2% in its stock market debut at Believe, which helps to distribute music via deals with platforms such as Spotify and Apple Music. Do you think there is something wrong with you?

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