US CPI Cools, European Stocks Rebound
European stock markets closed slightly higher on Tuesday (July 14th) after lower-than-expected US inflation data came out. Market sentiment improved as the data eased concerns that the Fed would raise interest rates this month.
The Euro STOXX 50 Index edged up 0.2% to 6,283, while the STOXX Europe 600 index gained 0.1% to 642. Lower US headline and core inflation rates also led to lower bond yields in several major economies, giving the stock market some breathing room.
The European banking sector also received a boost as lower yields helped improve expectations for credit conditions. Shares of BNP Paribas, ING, and Deutsche Bank each rose more than 1%.
Shares of electricity and infrastructure companies also rose, particularly those with exposure to artificial intelligence (AI) development. Schneider Electric rose 1.7%, while Siemens Energy surged 3% as investors returned to stocks linked to AI infrastructure needs.
Meanwhile, ASML rose 0.7% ahead of its financial report release. European markets benefited from the weaker US CPI, but investors will still be closely monitoring oil prices, the Middle East conflict, and major issuers' financial reports to determine their next direction.
Source: Newsmaker.id
