European Stocks Close Lower
European stocks closed slightly lower on Tuesday, extending their muted momentum amid fresh pessimistic economic signals ahead of monetary policy decisions by major central banks this week.
The Eurozone’s STOXX 50 edged 0.1% lower to 4,943 and the pan-European STOXX 600 dropped 0.4% to 514. The Federal Reserve is due to cut its key rate by 25bps after tomorrow’s session and the Bank of England is expected hold its rate later in the week, while hawkish moves from the BoJ may rekindle earlier concerns of carry trade unwinding. On the data front, the Ifo Business Climate for Germany posted a bigger-than-expected drop while the ZEW Economic Sentiment recorded a surprise increase.
Financials led the losses on the corporate front, with Santander, Intesa Sanpaolo, and BBVA losing between 4% and 1.5%. In the meantime, lower oil prices drove TotalEnergies and ENI to drop 1.2% and 2.4%, respectively. On the other hand, ASML closed sharply higher with a 2% jump.
Source: Trading Ecnomics
