European Stocks Dip as Investors Look to US Data for Clues
European stocks dropped on Tuesday as investors awaited US economic data for clues on the Federal Reserve’s policy outlook. The Stoxx Europe 600 Index fell 0.4%, with all 19 industry groups declining.
Investors Await US Data
Investors are looking to US data for clues on the Federal Reserve’s policy outlook. The US economy is expected to release its latest jobs report on Wednesday, which could provide insight into the central bank’s plans for interest rates.
The European Central Bank is also expected to release its latest policy decision on Thursday. The ECB is expected to keep its benchmark interest rate unchanged, but could provide further guidance on its plans for the future.
European Markets Decline
European markets declined on Tuesday, with all 19 industry groups falling. The Stoxx Europe 600 Index dropped 0.4%, while the German DAX Index fell 0.3%. The French CAC 40 Index declined 0.2%, and the UK’s FTSE 100 Index dropped 0.1%.
The banking sector was the biggest decliner, falling 1.2%. The energy sector was the second-biggest decliner, dropping 0.9%. The technology sector was the third-biggest decliner, falling 0.8%.
European Currencies Fall
European currencies also fell on Tuesday. The euro dropped 0.2% against the US dollar, while the British pound fell 0.1%. The Swiss franc was the biggest decliner, falling 0.3%.
European Stocks Outlook
European stocks are likely to remain volatile in the near term as investors await US economic data and the ECB’s policy decision. Investors will also be watching for any further developments in the US-China trade war, which could have a significant impact on global markets.
In the longer term, European stocks are likely to benefit from a global economic recovery. The European Central Bank has already taken steps to support the economy, and further stimulus measures could provide a boost to the markets.
Conclusion
European stocks dropped on Tuesday as investors awaited US economic data and the ECB’s policy decision. All 19 industry groups declined, with the banking sector falling the most. European currencies also fell, with the euro and British pound dropping 0.2% and 0.1%, respectively. In the near term, European stocks are likely to remain volatile, but could benefit from a global economic recovery in the longer term.