Johann M. Cherian and Ozan Ergenay
(Reuters) – European shares fell on Tuesday ahead of this week’s U.S. inflation data and the European Central Bank’s monetary policy decision, while diagnostics firm Biomerieux eyed its best day in more than two years under a new strategic plan .
The pan-European index was down 0.2% as of 0838 GMT after recording its strongest session in more than two weeks on Monday.
Traders held off on big bets ahead of U.S. inflation data on Wednesday and an ECB decision on Thursday that could shape prospects for interest rate cuts.
“Politicians (in Europe) will be very relieved to see that things are back on track… so they can afford to wait, which is why we think an April rate cut is unlikely,” said Maximilian Kunkel, Germany’s chief information officer and GFIW at UBS Global Wealth Management.
Eurozone banks were little changed that day after an ECB survey showed lenders lowered mortgage approval rates last quarter for the first time in more than two years, but demand for loans continued to fall amid high borrowing costs and a stagnant economy.
The data overall does not point to a credit collapse, and economic activity in the eurozone points to stabilization, Kunkel said.
BP (NYSE:) shares rose 1.8%, leading the oil and gas sector to a 0.8% gain after the British oil giant forecast first-quarter oil and gas and low-carbon energy output would be higher. than in the previous quarter. three months.
The basic resources sector rose nearly 1.4% as prices in Shanghai traded at a record high amid optimism around positive manufacturing data from major economies.
Biomerieux shares jumped 7.4% to top the benchmark index after the French company reported upbeat organic growth in the first quarter and unveiled a new strategic plan.
Amplifon shares fell 4.4% to the bottom of the benchmark index after competition watchdog AGCM said the retail hearing aid market in Italy lacks transparency over prices and services offered.
Atos shares fell 6.5% in volatile trading after the struggling French IT consultancy firm issued an update on its financial restructuring plan.
Fincantieri shares rose 5.3%, their highest since June 2021, after the Italian shipbuilder struck a deal with Norwegian Cruise Line (NYSE:) for four new cruise ships.