01/16/2024 – 6:38
By Sergio Caldas
São Paulo, 01/16/2024 – European stock markets were trading lower this Tuesday morning, extending yesterday's losses, as investors contained expectations for interest cuts following recent comments from authorities at the European Central Bank (ECB) . Consumer inflation (CPI) data from Germany and unemployment and wages data from the United Kingdom are also on the radar.
At around 6:20 am (Brasília time), the pan-European Stoxx 600 index had lost 0.40%, at 472.29 points.
The lack of appetite for risk has dominated Europe since yesterday, when ECB leaders were cautious about possible interest rate cuts in 2024. For Joachim Nagel, who is also president of the German Central Bank (Bundesbank), this is an issue that could will only begin to be debated during the European summer, which will begin in mid-June. Robert Holzmann, head of the Austrian Central Bank, in turn, said it was possible that the ECB would not even cut interest rates this year. Both spoke in Davos, Switzerland, where they are participating in the World Economic Forum.
On the other hand, research from the United Kingdom showed a new slowdown in wage growth and stable unemployment in the quarter up to November, increasing the chances of eventual monetary relaxation by the Bank of England (BoE), a factor that brought the pound down earlier. In Germany, it was confirmed that consumer inflation (CPI) accelerated at the end of last year.
On the US agenda, the continuity of the earnings season is the most relevant thing today. Two other major American banks – Goldman Sachs and Morgan Stanley – release quarterly results in the next few hours.
At 6:35 am (Brasília time), the London Stock Exchange fell 0.43%, the Paris Stock Exchange fell 0.40% and the Frankfurt Stock Exchange fell 0.52%. Those in Milan, Madrid and Lisbon had drops of 0.44%, 0.78% and 0.56%, respectively.
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