Europe midday: Shares slip into red as eyes turn to EZ, US inflation

28th May 2024 11:29

(Sharecast News) - European shares slipped into the red on Tuesday as traders looked ahead to inflation data across the Atlantic later in the week while hopes of a June interest rate cut from the European Central Bank were buoyed by comments from two policymakers on Monday.

The pan-regional Stoxx 600 index gave up early gains to be down 0.03% at 522.04, with all major bourses following suit.

"Thanks to this disinflationary process, inflation is converging to our 2% target in a sustained way, and the time is thus ripe in June to ease the monetary policy stance and start cutting rates," ECB Governing Council member Olli Rehn said in a speech.

The bank's chief economist Philip Lane told the Financial Times: "Barring major surprises, at this point in time there is enough in what we see to remove the top level of restriction."

Eyes will now turn to eurozone inflation data on Wednesday and US personal consumption expenditure data, which is the US Federal Reserve's targeted inflation measure, on Friday.

There was little corporate news to drive trade. Investment firm Intermediate Capital Group gained after it more than doubled profits in the year ended 31 March due to a huge increase in performance fee income, while assets under management rose by nearly a quarter.

German flavour and fragrance maker Symrise was up almost 3% after Deutsche Bank raised its rating to 'buy' from 'hold'.

JD Sports Fashion gained more than 5% ahead of annual results due out on Wednesday, with like-for-like sales expected to rise 4.2%. Peel Hunt analysts are forecasting a 7.2% fall in pre-tax profit £920m, while the company, which issued an earnings warning in January saw a maximum of £935m.

DraftKings and FanDuel owner Flutter Entertainment was under the cosh after the Illinois Senate passed a bill that would make Illinois the second most expensive state for wagers to do business in, with companies having to pay a top rate of 40% tax.

Persimmon fell following a report the housebuilder is exploring a £1bn takeover bid for Cala Group, a rival player in the sector which has been put up for sale.

Reporting by Frank Prenesti for Sharecast.com