PARIS: European shares ended subdued on Tuesday as gains in energy stocks countered losses in industrials, though investors exercised caution ahead of a slew of central bank decisions around the world this week.
The pan-European STOXX 600 index held steady at 456.52 points, while Germany’s DAX dipped 0.4%.
Industrials extended losses to a second straight session, with Germany’s Deutsche Post dropping 6.5%.
Investors trod cautiously ahead of interest rate decisions by major central banks this week, including the US Federal Reserve on Wednesday and Bank of England, Swiss National Bank, Riksbank and Norges Bank on Thursday.
Official data showed euro zone consumer inflation in August was slightly lower than initially estimated, but remained more than twice the European Central Bank’s target.
“It’s helpful, any data that shows inflationary pressures easing,” said Dan Boardman-Weston, chief executive & chief investment officer of BRI Wealth Management.
“What isn’t necessarily helpful for the interest rate argument is the moves we’ve seen in commodities ... It’s going make central banks’ job harder over the coming months.” Europe’s energy sector advanced 1.0% as crude prices jumped more than 1% on mounting supply concerns.
Real estate stocks also added 1.0% after falling more than 2% in the previous session.
Technology stocks eased 0.6%, stuttering for a third straight session.
Adding to nerves, the euro area’s benchmark 10-year Bund yield approached its highest levels in over 12 years on Tuesday after ECB officials reiterated that rates would stay at the current levels for an extended period.
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