“EU Stock Markets Open Slightly Higher, Awaiting US Inflation Data”

The EU stock exchanges start slowly

European stock markets open slightly higher, awaiting the release of US inflation data for April in the afternoon, which will provide indications on the Federal Reserve’s next moves. A few minutes after the start of trading, the London FTSE 100 index gains 0.10% to 7,771.74 points, the Paris CAC index gains 0.12% to 7,406.41 points, the Frankfurt Dax is on par. Finally, Madrid rose by 0.19% and Milan by 0.18%. Yesterday the president of the New York Fed, John Williams, said that the US central bank does not rule out a further rate hike at its next meeting on June 13-14. The Fed raised its key rates by a quarter of a point a week ago, hinting that it could pause after ten consecutive hikes. Analysts believe the US consumer price index is likely to have accelerated in April, rising to +0.4% from +0.1% in March, mainly due to a rebound in energy prices. Excluding the latter and food prices, so-called core inflation should still remain at +0.3% compared to +0.4% in the previous month, according to forecasts. In Europe, meanwhile, inflation in Germany in April was 7.2% on an annual basis, down on the 7.4% of the previous month. Market attention is also on US fiscal finances, as talks between President Joe Biden and opposition leaders on raising the country’s debt ceiling failed to conclude on Tuesday.