European Markets Steady Amid Political Uncertainty and Fed Anticipation

European shares opened steady on Tuesday after losses from political uncertainty in France. The STOXX 600 rose slightly, led by retail stocks. Focus shifts to the Federal Reserve's policy meeting. Basic resources declined with a drop in global metal prices. The European Central Bank aims for 2% inflation by next year.

Reuters | Updated: 11-06-2024 13:15 IST | Created: 11-06-2024 13:15 IST
European Markets Steady Amid Political Uncertainty and Fed Anticipation
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European shares steadied at the open on Tuesday following losses in the previous session on political uncertainty in France, while investor attention turned to the Federal Reserve's monetary policy meeting.

The continent-wide STOXX 600 was up 0.07% at 522.52 as of 0726 GMT, led by a 0.5% gain in retail stocks. France's CAC 40 benchmark index gained 0.2%, rebounding from a more than 1% decline on Monday, as President Emmanuel Macron called for a snap election following a heavy trouncing of his allies in European Union parliamentary elections.

Government bond yields across the board steadied after the election sell-off. The basic resources index led declines, down 1.3% as global base metal prices took a hit on a weaker yuan.

Adding to the sector's losses, Rio Tinto fell 1.9% after the mining giant said it would buy Mitsubishi Corp's 11.65% stake in Boyne Smelters (BSL) for an undisclosed sum. Focus will now be on the Fed's policy decision on Wednesday, which will help markets gauge the timing of interest rate cuts in the world's largest economy.

Meanwhile, European Central Bank policymaker Francois Villeroy de Galhau said the central bank will bring inflation back to its 2% target by next year, despite expected "noise" in monthly data this year.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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