European stocks slip lower, German inflation rises above 2%
European stock markets slipped lower Tuesday as investors digested fresh regional employment and inflation data as well as quarterly earnings from some major companies.
At 03:10 ET (08:10 GMT), the DAX index in Germany traded 0.9% lower, the CAC 40 in France fell 1% and the FTSE 100 in the U.K. dropped 0.4%.
Investors will return to scrutinizing fresh economic data this week, after the political turmoil of last week, starting with an inflation reading from Germany and UK employment data, released earlier Tuesday.
German inflation, harmonized to compare with other European Union countries, rose to 2.4% in October, confirming preliminary data, after having risen by 1.8% year-on-year in September.
While the European Central Bank policy makers wouldn't want to see inflation in the eurozone’s largest economy rise above their 2% target price once more, this is unlikely to stop the easing of monetary policy once more into the year-end.
The UK unemployment rate increased by more than expected in September, data showed Tuesday, rising to 4.3% in the three months to September, from 4.0% in the three months to August.
Signs of a cooling labor market come after Britain's economy grew in August following two consecutive months of stagnation, and after the Bank of England cut interest rates, for the second time this year, last week.
There are more economic numbers to digest later in the week, including US inflation and UK gross domestic product on Thursday.
Global politics in state of flux Still, sentiment remains on edge, with investors wary of the ramifications of President-elect Donald Trump’s return to the White House, particularly given his proposed policy of tariffs, potentially resulting in a trade war.
Additionally, the German government remains in a state of paralysis, with Chancellor Olaf Scholz expected to shortly call a vote of confidence in parliament, a move that would pave the way for snap elections following the collapse of his three-way governing coalition.(Cay)
Source : Investing.com
