Market Analysis

European stock markets traded with varying results in narrow ranges, as investors awaited crucial inflation figures that could influence global monetary policies.

As of 03:10 ET (07:10 GMT), Germany's DAX index was down 0.2%, while France's CAC 40 edged up 0.1% and the UK's FTSE 100 rose by the same margin.

Investor attention has been focused on upcoming eurozone inflation data, which is anticipated to show a slight increase to 2.5% year-over-year in May, up from 2.4% in the previous month. This release comes amidst expectations of interest rate cuts by the European Central Bank next week, although uncertainties remain.

Meanwhile, U.S. markets are also digesting important economic indicators, including the PCE price index, which is due later and is closely monitored by the Federal Reserve.

In corporate news, Renault's stock dipped 0.3% following the announcement of a joint venture with Geely aimed at enhancing their combustion and hybrid engine capabilities. Conversely, JD Sports Fashion saw its stock rise over 5% after reporting sales growth in both European and U.S. markets, rebounding from earlier setbacks.

On the commodities front, crude oil prices declined, reflecting concerns about subdued demand amidst ongoing global economic uncertainties. U.S. crude futures (WTI) were down 0.3% at $77.69 per barrel, while Brent crude fell 0.2% to $81.75 per barrel, with both benchmarks poised for monthly declines of around 2% in May.

Factors contributing to these declines include larger-than-expected draws in U.S. oil inventories coupled with increased gasoline inventories, suggesting potential weakness in demand despite seasonal expectations.

Moreover, weak manufacturing data from China has added to apprehensions about global demand, ahead of an upcoming meeting of OPEC+ where discussions are expected to extend current production cuts beyond the June deadline.

Paraphrasing text from "Reuters" all rights reserved by the original author.