May 21 2024: European stocks edged lower on Tuesday, reflecting a cautious mood following losses in Asian markets. The decline was influenced by U.S. Federal Reserve officials signaling a cautious approach towards potential interest rate cuts, dampening investor enthusiasm.
The pan-European STOXX 600 index dropped by 0.3% as of 0710 GMT. While healthcare stocks saw gains, they were outweighed by losses in the banking and utilities sectors.
Investors are keenly awaiting the minutes from the Fed’s latest policy meeting and the earnings report from chip giant Nvidia (NASDAQ:NVDA) on Wednesday. These updates will be crucial in determining whether the recent momentum that drove U.S. and European equities to record highs will persist.
Market sentiment was further dampened by comments from Fed officials, including Vice Chair Philip Jefferson, who indicated that inflation has not yet reached the central bank’s 2% target. Several officials on Monday emphasized the need for continued policy caution.
The market downturn persisted despite data showing that German producer prices fell more than expected in April.
In specific stock movements, AstraZeneca (NASDAQ:AZN) gained 0.9% after announcing its goal to increase revenue by approximately 75% to $80 billion by 2030. Conversely, Italy’s top insurer Generali (BIT:GASI) saw a 3.3% decline after reporting its first-quarter results. Energy contractor Saipem climbed 3.5% following the announcement of new contracts worth $3.7 billion.
