Investing.com – European stock markets fell on Tuesday as gains to start the week stalled on concerns that U.S. interest rates will remain high longer than expected.
At 03:10 ET (0710 GMT), German shares were trading down 0.1%, French shares were down 0.4% and UK shares were down 0.3%.
Fed interest rates in focus
Trading range was limited this week as investors awaited the release of minutes from the Federal Reserve’s latest meeting to gauge the timing and extent of a possible interest rate cut this year in the world’s largest economy.
Softer-than-expected consumer prices earlier this month led traders to reinstate easing bets, but on Monday the vice chairman said it was too early to say whether the slowdown was “prolonged” and the vice chairman said the restrictive politics takes longer, which dampens hopes. for early cuts.
There are more Fed speakers on Tuesday, including Barr, as well as members of the FOMC and .
In Europe, many expect interest rates to cut in June as policymakers believe inflation has slowed enough for them to ease monetary policy to help the region’s economic recovery.
Data released earlier on Tuesday supported that view as the fall in April was larger than expected, falling 3.3% year-on-year, mainly due to lower energy prices.
Excluding energy prices, producer prices were 0.6% lower than in April 2023.
AstraZeneca raises revenue target
In the corporate sector, AstraZeneca (NASDAQ:) shares rose 1.2% after the pharmaceutical giant announced a target of $80 billion in total revenue by 2030, up from $45.8 billion in 2023, driven by “significant growth in existing oncology, biopharmaceuticals and rare disease portfolio.”
Until this time, the company plans to release 20 new drugs, according to a message dedicated to Investor Day.
Sanofi (NASDAQ:) shares rose 0.5% after the French drugmaker announced it was partnering with artificial intelligence company OpenAI and Formation Bio to boost its drug development projects through the use of artificial intelligence.
Generali (BIT:) shares fell 3% despite the Italian insurer reporting better-than-expected first-quarter results, driven by growth across all its segments.
Oil falls on concerns over high US rates
Crude oil prices fell on Tuesday, extending losses from the previous session, amid concerns that high U.S. interest rates will weigh on economic activity in the world’s largest consumer this year.
By 3:10 a.m. ET, WTI futures were trading 0.7% lower at $78.75 a barrel, with the contract down 0.7% at $83.13 a barrel.
Both benchmark indexes fell less than 1% on Monday as U.S. Federal Reserve officials said they were waiting for more signs of slowing inflation before considering cutting interest rates.
Political uncertainty in Iran following the death of Iranian President Ebrahim Raisi, as well as concerns over the health of the Saudi king, also pose risks to crude oil markets.
Additionally, shares rose 0.9% to $2,415.75 an ounce and traded 0.1% higher at 1.0861.