European stocks edge higher ahead of key inflation release; ECB meeting looms
European equity indices edged higher Tuesday in cautious trade ahead of the release of the latest inflation data for eurozone, in the run up to the next European Central Bank meeting.
At 03:02 ET (07:02 GMT), the DAX index in Germany climbed 0.3%, the CAC 40 in France gained 0.2% and the FTSE 100 in the U.K. rose 0.3%.
Eurozone inflation due
Tuesday’s highlight will be the release of the flash eurozone inflation figures for May, which precede the policy-setting meeting of the European Central Bank later in the week.
Expectations are for consumer prices to have slowed to an annual 2.0% last month after April’s larger-than-expected 2.2% rise, which is seen providing the ECB with room to cut interest rates by a quarter point once more on Thursday, in what would be an eighth rate reduction in the past year.
This week’s reduction is largely priced in, and thus what the central bank does next will be the main question on investors’ minds.
U.S. tariff uncertainty, heightened further by ambiguity over court rulings on the legality of the tariffs, makes the backdrop challenging as the ECB weighs the impact to business activity against implications for inflation further out.
Trade talks still in spotlight
Investors will also be monitoring any developments in trade talks, after negotiations between the U.S. and China, the two largest economies in the world, soured last week.
U.S. President Donald Trump and Chinese leader Xi Jinping will likely speak this week, White House press secretary Karoline Leavitt said on Monday, days after Trump accused China of violating an agreement to roll back tariffs and trade restrictions.
The Trump administration is also urging countries to present their most favorable trade proposals by Wednesday, according to a report from Reuters, citing a draft letter to negotiating partners.
This move is part of an effort to speed up discussions with multiple partners before a self-set deadline in five weeks.
British American Tobacco supported by U.S. growth
In the corporate sector, British American Tobacco (NYSE:BTI) said that first-half revenue is expected to come in slightly ahead of previous guidance, supported by growth in its U.S. business and gains in modern oral products, particularly Velo.
Swiss wealth management Julius Baer (SIX:BAER) has unveiled a new three-year strategy and financial targets through 2028, following a review of its operations under new leadership.
Airbus (EPA:AIR), the world’s largest aircraft, delivered around 51 airplanes in May, industry sources said, down 4% from the same month last year. The tally brings deliveries so far this year to around 243 aircraft, down 5% from the first five months of 2024.
Source: Investing.com
