On Tuesday, a mixed opening was observed in the European stock markets.
Notably, the Euro Stoxx 600 index reported a decrease of 0.2 percent. Similarly, Frankfurt’s DAX index and London’s FTSE 100 index also experienced a dip by 0.2 percent and 0.1 percent respectively.
On the other hand, the Paris CAC 40 index saw an improvement by gaining 0.1 percent. The OMXS30 index, which represents the Stockholm stock exchange, also marked an increase, though slight, of 0.03 percent.
As the trading proceeded, among the various sectors monitored by the Euro Stoxx 50 index, the financial and health sectors were trending upwards. Conversely, the sectors of IT and industry were observed to be on a downward trajectory.
In today’s scenario, the European Central Bank is slated to receive crucial insights pertaining to the outcome of the wage negotiations for the last quarter of 2023 in the euro area. The wages negotiated in the third quarter saw an annual growth of 4.7 percent, effectively increasing the price pressure in the economy owing to rising wages.
Analysts from the Nordic region speculate that the data on wage negotiation outcomes from the euro area today may cause fluctuations in the market. This is due to the fact that wage trends have a direct impact on the timing of the first interest rate cuts by the European Central Bank. The market is expecting the first interest rate cut by June. In the course of the current year, roughly four interest rate cuts of 25 percentage points each are being accounted for.
The rate of inflation in Sweden picked up more than anticipated in January, rising to 3.3 percent annually from the earlier 2.3 percent. The surge in inflation led to a strengthening of the Swedish krona.
According to future projections, Wall Street is likely to have a bearish opening.
