Europe midday: Investors wary ahead of ECB decision, US inflation

9th Apr 2024 11:05

(Sharecast News) - European shares were lower on Tuesday as investors took a cautious approach ahead of US inflation data later in the week and an interest rate decision from the European Central Bank.

The pan-regional Stoxx 600 index was down 0.40% at 506.89 with all major continental bourses lower.

"With relatively limited corporate news to change the tide, investors are more concerned with macro events this week. Expectations for how much the Federal Reserve will cut rates this year have fallen to their lowest level since October, following unprecedented labour market figures last week," said Hargreaves Lansdown analyst Sophie Lund-Yates.

"Interest rate-sensitive treasury yields have edged higher as a result, and the overall mood across US and European markets is very much a cautious wait-and-see approach today."

In economic news, UK retail sales rose by a better-than-expected 3.2% in March on an annual basis, as Easter shoppers bought more food.

In equity news, shares in German defence company Rheinmetall plunged more than 12% at one point after earlier hitting record highs. The stock was down 9% at midday, although there was no obvious reason for the fall. Similarly, Saab was down more than 10% despite signing a new defence supply contract with the UK.

BP shares were up after the oil giant said it expected higher upstream production in oil and gas in the first quarter.

French IT consultancy Atos gained and then slipped into the red after outlining refinancing plans.

Reporting by Frank Prenesti for Sharecast.com