European markets mostly fall; caution ahead of US inflation data

Investing.com -- European stock markets mostly fell Tuesday, handing back some of the previous session's rally as optimism over potential Chinese stimulus waned. 

At 06:05 ET (11:05 GMT) Germany's DAX traded largely flat, while France's CAC 40 dropped 0.6%, and the UK's FTSE 100 slipped 0.6%.  Germany's inflation inches higher

Germany's November inflation data revealed a year-on-year CPI rise of 2.2%, up from 2% in October, confirming previously released numbers.

The European Central Bank holds its final policy meeting of the year on Thursday, and this relatively tame inflation data should provide it with room to authorise another 25-bps rate cut, its fourth such cut this year.

However, most eyes are on the release of US consumer inflation  data for November on Wednesday, as this is likely to provide more insight into the Federal Reserve’s interest rate trajectory.

Another influence was the release of disappointing Chinese trade data, which pointed to weakening demand in a major export market for a number of senior European companies. Ashtead eyes New York listing

In the corporate sector, Ashtead (LON:AHT ) stock slumped 12% after the British equipment rental firm warned of lower annual profit due to a weak commercial construction market in the US, along with plans to move its primary listing to New York from London.

Centrica (LON:CNA ) stock fell 1.2% after the parent company of British Gas disappointed with it full-year guidance, even as it announced a £300 million extension to its share buyback program, bringing the total amount repurchased since November 2022 to £1.5 billion. 

Delivery Hero (ETR:DHER ) stock fell over 10% after the German food delivery company listed its Middle East subsidiary, Talabat, on the Dubai Stock Exchange in the largest global technology initial public offer in 2024. Oil prices decline amid market caution

Oil markets also fell Tuesday, following robust gains driven by expectations of further economic stimulus in China and escalating geopolitical tensions in Syria. 

By 06:05 ET, the US crude futures (WTI) dropped 0.9% to $67.77 a barrel, while the Brent contract slipped 0.8% to $71.56 a barrel.

Oil prices rose over 1% on Monday, boosted by China’s top political body raising hopes for more stimulus measures as well as heightened geopolitical tensions in Syria.

(Navamya Acharya contributed to this article.)

Source: Investing.com