(CercleFinance.com) – European stock markets are losing ground (-0.2% in London, -0.8% in Frankfurt, -0.5% in Paris), after the publication of inflation figures in the Eurozone which are not very favourable to a forthcoming reduction in key rates by the ECB.
According to Eurostat’s flash estimate, the annual inflation rate in the euro area is estimated at 2.5% in June 2024, down slightly from 2.6% in May, but with a stable rate of 4.1% for services.
‘The fact that services inflation, which is most sensitive to domestic economic conditions, has remained elevated this year reinforces the case for caution by the ECB,’ warns Capital Economics.
The analyst firm points out that at the Sintra conference this week, Christine Lagarde and Philip Lane both said they needed more information before considering a further rate cut.
“So, barring a major surprise in other economic data over the next two weeks, the Bank appears almost certain to leave rates unchanged at its July 18 meeting,” he continued.
Another morning data in the Eurozone, the unemployment rate adjusted for seasonal variations remained stable in May compared to the previous month, corresponding to 11.08 million people (+38,000 compared to April).
In terms of values, Michelin dropped 4% in Paris, following cautious comments from the tire manufacturer regarding its sales volumes, while Teleperformance (+5%) took the lead in the CAC40 following an advisory upgrade from Morgan Stanley.
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