Radiocor News

European shares open lower on US interest rate outlook

FTSE 100 down 0.66; DAX down 0.69%; CAC 40 down 0.58% (Il Sole 24 Ore Radiocor) - Milan, 24 May - European shares opened lower after yesterday's muted session amid weak global markets as concerns over the US interest rate outlook kept sentiment in check.

The Stoxx 600 index was down 0.74%, on track for a weekly loss.

Strong US economic activity data, more hawkish-than-expected minutes of the Federal Reserve's latest policy meeting on Wednesday and a string of warnings on inflation from Fed officials rekindled concerns over higher-for-longer US interest rates, which would in turn put a damper on economic growth.

The European Central Bank is widely expected to cut interest rates in June, but UK inflation came in higher than expected earlier this week, putting pressure on the Bank of England to hold off from slashing rates.

Data from the Office for National Statistics showed today that UK retail sales volumes dropped 2.3% in April, more than a 0.4% decline forecast by economists polled by Reuters, as wet weather deterred shoppers.

Also, the German statistics office reported today that the region's biggest economy grew by 0.2% in the first three months of 2024, confirming preliminary data. "After GDP declined at the end of 2023, the German economy started 2024 with positive growth," said Ruth Brand, president of the statistics office.

In European stock market dealings shares fell across the board, with utilities leading the way south and extending yesterday's losses.

At 0730 GMT the FTSE 100 was down 0.66% at 8,283 points, the the Frankfurt DAX was down 0.69% at 18,558 points. The Paris CAC 40 was down 0.58% at 8,055 points, while in Milan the FTSE MIB was down 0.88% at 34,164 points and in Madrid the IBEX 35 was down 1.10% at 11,186 points.

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(RADIOCOR) 24-05-24 10:00:38 (0217) 5 NNNN

 


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