Major European stock markets fell on Tuesday (11/6) as investors awaited the next Fed meeting and US inflation data.
The pan-European Stoxx 600 closed up 0.93% at 517.28 points, erasing small gains made earlier in the session. All sectors and major bourses closed in the red, with banks leading the losers, down 2.17%.
Among major European indices, Germany’s DAX fell 0.66% to 18,372.39, Britain’s FTSE 100 lost 0.98% to 8,147.81 and France’s CAC 40 fell 1.33% to 7,789.21 units. Regionally, Italy’s FTSE MIB fell 1.93% to 33,874.48, Spain’s IBEX 35 lost 1.60% to 11,175.50 and Portugal’s PSI fell 1.41% to 6,634.71.
British IT start-up Raspberry Pi closed down 38.5% after debuting on the London Stock Exchange, while shares of French IT company Atos fell 15.11% after the company announced a “rescue” deal that would lead to a large dilution of existing shareholders.
UK employment data released on Tuesday showed that the number of people in work rose 0.6% year-on-year in May, but the unemployment rate rose to 4.4% from 4.3%.
Annual wage growth, excluding bonuses, came in at 6% for the February to April quarter, presenting a potential concern for the Bank of England, which is considering when to cut rates. interest rate.
“What the Bank of England would like to see is ‘inflation’ wages falling further than before, particularly as the headline rate of inflation is very close to target,” Richard said in a note.
“The BoE will be more cautious about cutting interest rates at a time when the purchasing power of consumers is high, because it could trigger an inflationary boom. So today’s data will continue to put to brake the rate reduction in June or August, with November remaining the most likely date for the first cut.
UK gross domestic product data for April is expected on Wednesday.
Tuesday’s movements were also influenced by European elections, as well as the decision of French President Emmanuel Macron to call early parliamentary elections, after a significant increase in the National Alarm party.
The market’s attention now turns to the latest decision by the US Federal Reserve on interest rates, as well as the May consumer price index, which is expected on Wednesday. US inflation data could be a key test for markets, especially after a strong jobs report continued to suggest the central bank may hold off on cutting interest rates. interest.
Investors will be closely watching the Fed’s updated forecasts of the timing and frequency of rate cuts, known as the “dot plot.” Markets expect only one rate cut this year, in November, according to CME’s FedWatch Tool.