LONDON – European shares fell into negative territory on Tuesday amid tension over inflation, and the next US inflation reading is due at the end of the week.
pan europe Stokes 600 It was down 0.5% in early trade, with technology and retail shares sliding 1.1% to lead losses as almost all major sectors and exchanges slipped into the red.
International markets are bracing for major US data releases this week, including the latest inflation reading on Friday.
The US May CPI is expected to be slightly cooler than April, and some economists predict it could confirm that inflation has peaked.
Investors will also closely watch the University of Michigan Consumer Sentiment Index, due on Friday as well.
US stock futures It fell Tuesday morning as Wall Street struggled to determine direction ahead of Friday’s headline inflation reading.
The UK market reaction amid the country’s political turmoil was limited on Tuesday. British Prime Minister Boris Johnson on Monday night survived a confidence vote launched by his lawmakers amid growing discontent with his leadership.
Some 211 Conservative MPs voted for the prime minister on Monday while 148 voted against him. Johnson needed the support of a simple majority of 180 MPs to win the vote, but the 148 figure was worse than many expected.
It is also worse than the result of a similar vote by former leader Theresa May in 2018. She resigned as prime minister after just six months.
It’s a quiet day on the data and earnings front in Europe. German industrial orders fell more than expected in April for the third consecutive monthly decline, as demand continued to weaken and uncertainty increased since the Russian invasion of Ukraine.
There was little by way of price action for major individual stocks on Tuesday. Swiss logistics company Enter The Stoxx 600 Index is down 5% after Credit Suisse cut its target price for the stock.
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