📖 Your Q2 Earnings Guide: Discover the Stocks ProPicks AI Highlights to Jump Post-EarningsRead more

European stocks largely lower; key inflation data looms

Published 2024-05-30, 03:18 a/m
© Reuters.
EUR/USD
-
UK100
-
FCHI
-
DE40
-
AAL
-
BHP
-

Investing.com - European stock markets largely fell Thursday, with rising global bond yields hitting sentiment ahead of the release of highly anticipated inflation data at the end of the week.

At 03:10 ET (07:10 GMT), the DAX index in Germany traded 0.3% lower, and the FTSE 100 in the U.K. dropped 0.2% while the CAC 40 in France rose 0.1%.

Rising yields hit sentiment 

Equities have retreated in Europe, following the weakness on Wall Street and the losses in Asia overnight, with sentiment pressured by rising U.S. Treasury yields as worries about inflation play into the narrative that interest rates will remain elevated for longer than expected.

The two-year U.S. Treasury yield traded near the 5% level on Thursday while the 10-year yield stayed near its strongest level in weeks.

Data released on Wednesday showed consumer prices in Germany rose more than forecast in May, ensuring that the spotlight is shining even more brightly on the eurozone's reading on Friday.

The eurozone inflation release is expected to tick up 2.5% in May year-on-year, from 2.4% in April.

The European Central Bank is widely expected to cut interest rates next week, but uncertainty over what follows is making investors nervous.

Over in the U.S., the focus is squarely on upcoming gross domestic product data later in the session, and more importantly the PCE price index data, the Federal Reserve’s preferred inflation gauge, on Friday. 

Several Fed officials have warned that there needs to be more substantial progress on inflation before the U.S. central bank should be considering cuts.

BHP walks away from Anglo deal

In corporate news, BHP Group (NYSE:BHP) tock fell 1.7% after the mining giant decided against making a formal offer for Anglo American (JO:AGLJ) (LON:AAL), walking away from its $49 billion takeover deal.

"We were unable to reach agreement with Anglo American on our specific views in respect of South African regulatory risk and cost," BHP said in a statement, adding that it did not get "key information" from Anglo to address these risks.

Crude slips despite US inventory draw 

Crude prices slipped lower Thursday, as wider concerns over high borrowing costs outweighed optimism over a bigger-than-expected draw in U.S. inventories. 

By 03:10 ET, the U.S. crude futures (WTI) traded 0.3% lower at $79.03 per barrel, while the Brent contract dropped 0.3% to $83.1 per barrel.

Data from the American Petroleum Institute showed on Wednesday that U.S. oil inventories shrank nearly 6.5 million barrels last week, much more than expectations for a draw of 1.9 million barrels.

The data usually heralds a similar reading from official inventory data, which is due later Thursday. The outsized draw suggested that U.S. fuel demand was picking up with the onset of the travel-heavy summer season, widely seen as the Memorial Day weekend. 

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.