Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

European Stocks Lower; German CPI Puts Focus on ECB Meeting

Published 12/04/2022, 09:08
Updated 12/04/2022, 09:08
© Reuters.

© Reuters.

By Peter Nurse

Investing.com - European stock markets traded sharply lower Tuesday, with investors cautious ahead of key central bank meetings, with inflation climbing sharply, while the ongoing Ukraine conflict looks likely to intensify.

By 3:40 AM ET (0740 GMT), the DAX in Germany traded 1.9% lower, the U.K.’s FTSE 100 dropped 0.9%, while CAC 40 in France rose 1.9%.

The European Central Bank is set to hold its latest policy-setting meeting on Thursday, and ahead of that German consumer price inflation rose 2.5% on the month in March, up a massive 7.3% on the year.

The U.S. inflation equivalent number is due later in the session, and investors are bracing for price gains running at their highest level in four decades. This will be the last time the Federal Reserve will see official consumer price index data before its May meeting.

Elsewhere, data released earlier Monday showed the U.K. unemployment rate fell to 3.8% in February, dropping to its lowest level since 2019.

Also of interest later in the session will be the German ZEW economic sentiment index, which is expected to show a drop in confidence in the Eurozone’s largest economy in April, with the war in Ukraine weighing.

This conflict looks set to intensify, with Russia said to be amassing troops in the eastern Donbas region of Ukraine for a new assault on the port of Mariupol.

In corporate news, easyJet (LON:EZJ) stock fell 1.3% after the budget airline predicted it will have lost over half a billion pounds in the six months through March. However, the carrier said Tuesday it has experienced a "strong, sustained recovery" in bookings since the U.K. lifted its COVID-19 restrictions.

Deutsche Bank (DE:DBKGn) stock fell 9.6% and Commerzbank (DE:CBKG) stock dropped 8.3% after an unnamed sold stakes late Monday of more than 5% in Germany's top two lenders, while Novartis (SIX:NOVN) stock dropped 1.1% following reports the Swiss drugmaker is set to cut thousands of jobs worldwide as part of a reorganization.

ASOS (LON:ASOS) stock rose 0.4% after the online retailer maintained its full-year guidance despite reporting an 87% fall in first half profit, reflecting supply chain constraints.

Oil prices rose Monday, rebounding after recent losses after China eased some of its COVID-related lockdowns, lifting some of the worries about oil demand from the world’s largest importer.

Additionally, the Organization of Petroleum Exporting Countries warned that losses from Russian sources due to sanctions could be as much as seven million barrels per day, adding that the volume will be “impossible” to replace.

This follows a meeting between OPEC and European Union officials, with the EU currently drafting proposals for an oil embargo on Russia in the wake of its invasion of Ukraine.

Investors now await U.S. crude oil supply from the American Petroleum Institute, due later in the day.

By 3:40 AM ET, U.S. crude futures traded 2.7% higher at $96.83 a barrel, while the Brent contract rose 2.6% to $101.05. Both benchmarks dropped around 4% on Monday, after recording last week their second consecutive losing week.

Additionally, gold futures rose 0.4% to $1,956.40/oz, while EUR/USD traded 0.2% lower at 1.0866.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.