European Stocks Edge Up Ahead of Key U.S. Economic Data
Aug 13 – European stocks saw a modest rise on Tuesday, inching up after a flat performance in the previous session, as investors awaited important U.S. economic data that could offer clues about the Federal Reserve’s next move on interest rates. However, gains were limited due to disappointing corporate earnings.
The STOXX 600 index, which tracks the performance of companies across Europe, was up 0.1% at 499.62 points, with utilities and financial sectors leading the gains.
Despite the upward movement, market sentiment was cautious as investors held back from making significant bets ahead of the U.S. producer price inflation data, which is expected to show a slight increase of 0.2% in July compared to the previous month. The yearly rate is anticipated to slow to 2.3%. This will be followed by a closely watched consumer price index (CPI) report on Wednesday.
Market participants are weighing the likelihood of a 25 basis-point interest rate cut versus a more substantial 50 basis-point reduction at the Federal Reserve’s September meeting.
“Investor sentiment is still slightly shaken by last week’s events. They’re looking for confirmation and clarity about what’s going on with the CPI,” said Teeuwe Mevissen, senior macro strategist at Rabobank.
In Europe, attention is also focused on Germany’s economic sentiment data, due at 0900 GMT, which will provide further insights into the health of the region’s economy.
