European Stocks Edge Lower; UK Mid-Caps Gain on Cooler Inflation
European stocks retreat on lingering jitters about US tariffs. UK mid-caps rose on an unexpected cooldown in inflation before a key budget statement from the government later in the day.
The Stoxx Europe 600 Index fell 0.3% at 8:42 a.m. in London, with health care and chemical stocks declining the most while energy and utilities gained. Miners erased gains that were driven by a Bloomberg News report that US tariffs on copper imports could come within several weeks, months earlier than the deadline for a decision.
The UK’s FTSE 250 Index of smaller companies rose 0.5% after inflation unexpectedly cooled in February, strengthening the case for the Bank of England to cut interest rates again in May. Chancellor of the Exchequer Rachel Reeves is expected to announce billions of pounds of cuts to government spending during a midyear fiscal update in the House of Commons.
The FTSE 250, which has more domestically focused companies than the FTSE 100, is still heading for one of the worst quarters on record compared to big-cap peers.
Traders are waiting for US President Donald Trump's “Liberation Day” tariff announcement on April 2, when he will introduce so-called reciprocal levies. They are also assessing a ceasefire in the Black Sea agreed to by Russia and Ukraine.
European shares are having a stellar year so far, with the main regional index set for its biggest-ever quarterly outperformance compared to the S&P 500 in dollar terms.
“European markets are proving robust despite unresolved trade restrictions and political developments, as well as cooling consumer behavior,” said Guillermo Hernandez Sampere, head of trading at asset manager MPPM.
Among individual movers, Anglo American Plc fell 0%, reversing early gains. A Bloomberg News report said the company has begun initial talks with banks about listing its De Beers diamond unit.
Source: Bloomberg
