European stocks saw a muted performance on Tuesday, as investors turned their attention to upcoming U.S. consumer price data and the Federal Reserve's interest rate decision, both expected on Wednesday.
While the Federal Reserve is anticipated to keep interest rates steady, traders are particularly interested in the updated economic and rate projections from Fed officials.
In the U.K., recent employment data provided mixed signals. The unemployment rate edged up to 4.4% from 4.3% in the three months leading up to April, marking the highest rate since September 2021. Concurrently, wage growth surged to 5.9%, intensifying concerns that rising wages could fuel consumer prices, potentially hindering the central bank's progress in controlling inflation.
The pan-European STOXX 600 dipped by 0.1% to 521.53, after a 0.3% decline on Monday. Germany's DAX and the U.K.'s FTSE 100 saw marginal and half-percent drops, respectively, while France's CAC 40 remained mostly flat with a slight positive trend.
The euro held steady, despite hitting a one-month low the previous day. This follows French President Emmanuel Macron's announcement of a snap national election in response to a strong performance by far-right parties in the European Parliament elections. French bonds stabilized after yields on the country's 10-year debt peaked for the year on Monday.
In corporate developments, Rio Tinto declined by 2.2% after agreeing to purchase Mitsubishi Corp's 11.65% stake in Boyne Smelters for an undisclosed amount. FirstGroup, a transport operator, fell by 1.2% following a drop in annual revenue. Conversely, Senior Plc., a manufacturer of high-tech components, surged by 2.2% after securing long-term production contracts from Collins Aerospace.
Societe Generale's shares slipped by 0.7%, extending losses from the prior session amid reports of challenges in selling its securities services unit. Ipsen saw a 0.5% gain after receiving accelerated FDA approval for a liver disease drug. Conversely, Atos SE plummeted nearly 11%. The IT services and consulting firm announced its choice of the Onepoint consortium—comprising Onepoint, Butler Industries, Econocom, and a group of its financial creditors—for its financial restructuring among two received proposals.
