European Stock Down Ahead Of Inflation

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European Stock Down Ahead Of Inflation

European Stock Down By 0.3% Ahead Of Inflation Data

Most of the European stock indexes have turned red and retreated from their record highs as Monday's session unfolds. If we look at the other side, even the US indexes are down, which suggests that investors are worried about economic uncertainty.

Amidst all of this, another thing that is worsening the market's outlook is the inflation data from the USA, due later this week.

Us &Amp;Amp; Uk Stock Markets Under Pressure

Even the US stocks appear to be struggling and have already moved higher from record highs. According to analysts, this move is due to profit-taking as investors exit the market after the release of the NFP. To make things worse, there is still uncertainty about whether a rate cut will take place in June.

For now, the key focus is on the US inflation data, as it will tell us when we can expect rate cuts in 2024. In these conditions, the MSCI World Equity index shows a change of -0.3% and has moved lower from its highs on Friday.

Additionally, the STOXX 600 has also turned lower by 0.5%, while the FTSE 100 is down by 0.5%. In fact, even the DAX from Germany shows a -0.7% change, which highlights an overall bearish trend.

According to a senior portfolio manager, the uncertain economic outlook has led to a downturn in European stocks. Another thing that is weighing heavily on the markets is the high valuation of stocks. They added that even the Maco economic outlook shows a great deal of uncertainty.

Just a week ago, comments from Fed chair Powell, along with other ECB policymakers, hinted at rate cuts starting in the summer of 2024.

Although the trend in the stock markets is bearish, the Wall Street futures contract hints at a possible pullback. However, this uncertainty will be reduced to a great extent once the US inflation data is released.

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