FX.co ★ European Stocks Hold Pullback

European equities remained under pressure as investors continued to evaluate the trajectory of global interest rates and the state of the European economy. The STOXX 50 and STOXX 600 indices both experienced a decline of 0.5%. In terms of inflation, France and Italy reported rates slightly below expectations, Spain aligned with median forecasts, while Germany exceeded predictions, adding to the uncertainty regarding the European Central Bank's potential for further rate cuts this year. Meanwhile, long-term bond yields in the Eurozone's major economies inched higher, escalating the strain on banks as political instability in France, notably budget-related disagreements, widened yield spreads and negatively impacted bank equities. Notably, shares of Santander, ING, and Nordea dropped by 1.5%. In the technology sector, SAP experienced a 1.8% decrease, weighing it down. On a more positive note, Rheinmetall led growth in the defense sector with a 3% increase. Both major indices were poised for a 1% gain for August.