European stocks mostly edge higher; eurozone inflation in spotlight

European stock markets edged mostly higher Tuesday, starting the new quarter on a positive note ahead of the release of key regional inflation data. 

At 03:05 ET (07:05 GMT), the DAX index in Germany traded 0.4% higher and the FTSE 100 in the U.K. climbed 0.1%, while the CAC 40 in France slipped 0.1%. Eurozone inflation in spotlight

European stock markets have generally started the new month, and quarter, with gains, as investors look towards the release of European inflation data later in the session amid the hope for more interest rate cuts by the European Central Bank as the year draws to an end.

Data released on Monday showed that German inflation eased slightly more than forecast to 1.8% in September, slightly below the 1.9% forecast, and followed a year-on-year increase in consumer prices of 2.0% in August.

Inflation is also easing in France, Italy and Spain, suggesting that the risk to the eurozone forecast of 1.8% growth annually in September is to the downside, even though this would still be below the ECB’s 2.0% medium-term target.

Markets are already moving to fully price in an October rate cut after President Christine Lagarde said on Monday the trend will be taken into account at the next policy meeting, which is on Oct. 17. Payrolls due on Friday

The major indices closed with minor gains on Wall Street overnight after Federal Reserve Chairman Jerome Powell signaled that the Fed will continue to cut interest rates, but stressed that the future path of rates isn't on a preset course and monetary policy will be meeting by meeting. 

The widely-watched monthly jobs report is due on Friday, and the US economy is expected to have added 144,000 jobs last month.

Weaker than expected data could revive fears over the prospect of a recession, while unexpectedly strong jobs growth may stir worries that the Fed will not cut rates as deeply as expected. Pfizer cuts stake in Haleon

In the corporate sector, Haleon (LON:HLN ) stock fell 0.9% after drugs giant Pfizer (NYSE:PFE ) offloaded shares worth roughly $3.26 billion in the world's largest standalone consumer healthcare firm.

Greggs (LON:GRG ) stock slipped 1.2% after the British baker kept its full year outlook on Tuesday, even though underlying sales growth slowed in its latest quarter. Crude stable despite Middle East tensions

Oil prices were little changed Tuesday as concerns of tepid demand growth offset worries that escalating tensions in the Middle East could hit global supply.

By 03:05 ET, the Brent contract dropped 0.2% to $71.57 per barrel, while U.S. crude futures (WTI) traded 0.2% lower at $68.05 per barrel.

Israel said early on Tuesday that its troops had begun "limited" raids against Hezbollah targets in the border area of Lebanon, a move that risks escalating a conflict in the oil-rich Middle East that threatens to suck in the U.S. and Iran.

Brent ended September down 9%, its third month of declines and largest monthly drop since November 2022. It also slumped 17% in the third quarter for its biggest quarterly loss in a year. WTI fell 7% last month and dropped 16% for the quarter.

 

Source: Investing.com