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European stocks fall as investors await US inflation figures

European stocks fell on Tuesday, as government debt came under pressure and oil recovered as investors prepared for the latest US inflation data and considered the significance of the central bank’s interest rate policy.

The regional Stoxx 600 index opened down 1.1%, the German Dax fell 1.8% and the French Cac 40 lost 1.7%. The London FTSE 100 was down 0.8%.

U.S. futures have indicated a decline, with contracts tracking the Wall Street S&P 500 and the technology-focused NASDAQ 100 both declining.

The yield on the U.S. Treasury Department for 10 years reached its highest level since the end of 2018 when investors sold the bills. Debt yields, which underlie global fundraising costs, rose another 0.04 percentage points to 2.82 percent. The yield on the biennial government-sensitive banknote rose by 0.03 percentage points to 2.54%.

The yield on the German Bund for 10 years, a proxy for recruitment costs in Europe, added 0.03 percentage points to 0.84 percent, the highest level since 2015.

Investors’ attention will focus on the latest U.S. inflation measures to be released later on Tuesday, with the March Consumer Price Index The forecast for an increase of 8.4%. Year after year, according to Bloomberg estimates, the fastest pace since 1981.

“A number of this type should support market expectations that [US Federal Reserve] “It will raise interest rates by 2.5 percent by the end of the year,” analysts at ING said in a note. The Fed raised its interest rate by a quarter of a percentage point to 0.5 percent last month, The first increase since 2018.

White House Press Secretary Jen Pesky told reporters on Monday that primary consumer price index inflation in March is expected to be “unusually high”, urgently needed to rise by rising energy prices since Russian President Vladimir Putin invaded Ukraine in late February. The so-called core inflation, which eliminates volatile food and energy prices, is expected to fall, she added.

The average cost of a barrel of oil in March was about $ 110, the rulings noted, compared to about $ 75 at the beginning of the year.

Oil prices, which fell on Monday, bounced back to over $ 100 a barrel on Tuesday. Brent crude oil, the international oil index, rose 2.6% to $ 101.11 a barrel, while the US marker West Texas Intermediate climbed 2.9% to $ 94.29

In Asia, the Hong Kong Hong Kong Index fell earlier in the session, up 0.7% in recent trading. China’s CSI 300 added 1.9% after an initial decline. Japanese Topix was down 1.4% and South Korea’s Caspian was down 1%.

European stocks fall as investors await US inflation figures Source link European stocks fall as investors await US inflation figures

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