Feb 26 2024: European stock markets commenced the week cautiously, slipping lower as investors anticipated the unveiling of crucial inflation indicators.
As of 03:05 ET (08:05 GMT), Germany’s DAX index was down 0.1%, France’s CAC 40 declined 0.2%, and the U.K.’s FTSE 100 dropped 0.1%.
Following a surge in global equities last week propelled by Nvidia (NASDAQ:NVDA)’s stellar quarterly report, attention now turns to the persistent concern of inflation and its implications for monetary policy.
The Eurozone is scheduled to release closely monitored inflation data on Friday, the final reading before the European Central Bank meeting on March 7. Economists anticipate a February reading of 2.5%, down from January’s 2.8%, edging closer to the ECB’s 2% target after spiking to double digits in 2022.
Inflation reports from Germany, France, and Spain are due on Thursday, preceding the main Eurozone release.
Meanwhile, the U.S. Federal Reserve’s core measure of personal consumption expenditures prices is expected on Thursday, with a forecasted 0.4% rise in January. Recent robust economic data has led investors to push back expectations of Federal Reserve rate cuts, but a higher-than-expected reading could prompt further delays.
Japan’s CPI data is expected on Tuesday, slowing to an annual 1.8% from December’s 2.3%.
In corporate news, Bunzl (LON:BNZL) shares declined 3.8% after the company projected a slight operating margin decline despite reporting a 10% increase in annual profits, alongside weaker trading in its North American operations. Bunzl also announced the acquisition of 80% of Nisbets, a catering equipment distributor, for £339 million (£1 = $1.2675).
Ryanair (IR:RYA) shares slipped 0.2% following CEO Michael O’Leary’s warning of potentially 10% higher flight costs this summer due to a shortage of new planes.
Stellantis (NYSE:STLA) shares rose 0.2% after announcing a multi-billion-euro frame agreement with leasing company Ayvens to sell up to 500,000 vehicles across Europe over the next three years.
In commodities, oil prices extended losses on Monday amid demand uncertainties, with U.S. crude futures down 0.6% at $76.07 a barrel and the Brent contract dropping 0.5% to $80.40 a barrel.
Gold futures fell 0.2% to $2,044.50/oz, while EUR/USD traded 0.1% higher at 1.0833.
