Investing.com – European stock markets fell lower on Tuesday after positive momentum at the start of the week stalled on concerns that US yields would remain higher than expected for longer.
At 03:10 ET (07:10 GMT), shares in Germany were trading 0.1% lower, shares in France were down 0.4%, while shares in Britain were down 0.3%.
Fed interest rates in focus
Trading ranges have been tight so far this week as investors awaited the release of minutes from the Federal Reserve’s latest policy meeting to gauge the timing and size of possible rate cuts this year in the world’s largest economy.
Softer-than-expected consumer prices earlier this month caused traders to rebuild their easing bets, but the vice chairman said on Monday it was too early to say whether the slowdown is “prolonged”, and the vice chairman said restrictive policies need more time, which diminishes hope. for early cuts.
There are more Fed speakers to digest on Tuesday, including Barr again, as well as FOMC members, and.
In Europe, interest rates are widely expected to be cut in June as officials believe inflation has stalled enough that they can ease monetary policy to support the region’s economic recovery.
Data released earlier Tuesday supported that view, as April figures fell more than expected, down 3.3% on the year, mainly due to lower energy prices.
Excluding energy prices, producer prices were 0.6% lower than in April 2023.
AstraZeneca increases sales target
In the corporate world, shares of AstraZeneca (NASDAQ:) rose 1.2% after the pharmaceutical giant announced a target of $80 billion in total revenues by 2030, up from $45.8 billion in full-year 2023, via “significant growth in its existing oncology, biopharmaceuticals and rare diseases portfolio.”
The company plans to launch twenty new drugs before then, according to a press release at the investor day.
Sanofi (NASDAQ:) Shares rose 0.5% after the French drugmaker announced it is teaming up with artificial intelligence company OpenAI and Formation Bio to boost its drug development projects through the use of artificial intelligence.
Shares of Generali (BIT:) fell 3%, despite the Italian insurer reporting better-than-expected results for the first quarter, driven by growth in all its segments.
Crude oil falls on concerns about high US interest rates
Crude oil prices fell on Tuesday, extending losses from the previous session, on concerns that high US interest rates will hit economic activity this year for the world’s biggest consumer.
At 3:10 AM ET, futures (WTI) were trading 0.7% lower at $78.75 per barrel, while the contract was down 0.7% at $83.13 per barrel.
Both benchmarks fell less than 1% on Monday as U.S. Federal Reserve officials said they were waiting for more signs of slowing inflation before considering rate cuts.
Political uncertainty in Iran, following the death of Iranian President Ebrahim Raisi, and concerns over the health of the Saudi king have also brought some risk to crude markets.
Moreover, the price rose 0.9% to $2,415.75/oz, while trading 0.1% higher at 1.0861.