FX.co ★ European Stocks Extend Losses After EA Inflation

European stocks continued their downward trend on Tuesday, with the STOXX 50 declining by 0.5% and the STOXX 600 slipping by 0.6%, approaching one-month lows, as investors assessed the latest inflation figures. The Eurozone's annual inflation rate rose to 2.1% in August, surpassing the anticipated 2%, while core inflation remained stable at 2.3%. These statistics strengthened the expectation that the European Central Bank will maintain its stance on rate cuts during its upcoming meeting, raising skepticism about the possibility of further easing measures within the year. On the corporate side, Nestlé dropped 0.9% following the termination of its CEO. Meanwhile, ASML Holding and Siemens contributed to the negative sentiment with declines of 1.8% and 2.8%, respectively. In contrast, LVMH saw a notable increase of 3.2%, and Schneider Electric rose by 2.6% following Deutsche Bank's upgrade of the stock from a “hold” to a “buy” rating.