Steady European Shares Await U.S. Inflation Data Amid Trade Talk Impacts
European shares remained mostly steady as investors awaited a U.S. inflation report and assessed the potential impact of a U.S.-China trade deal. The pan-European STOXX 600 saw little change, and markets stayed on edge ahead of the crucial data release. Trade agreement developments and economic growth concerns were key factors.
European shares showed little movement on Wednesday as investors prepared for a highly anticipated U.S. inflation report and considered the effects of a tentative U.S.-China trade agreement.
The pan-European STOXX 600 index saw minimal change, settling at 553.88 points by early morning GMT. Market participants stayed cautious as they awaited May's U.S. inflation data, looking for indications that tariffs may be influencing the economic landscape. Investors are mindful that most reciprocal tariffs are paused until July, while the economy's Q1 slowdown could suppress inflation temporarily.
Nonetheless, a framework to rekindle the U.S.-China trade truce, including the removal of China's rare-earth mineral export restrictions, was confirmed by officials from both countries. Despite some investor disappointment over the lack of a major announcement, the trade news still resonated. In parallel, U.S. and Mexico were negotiating a potential steel tariff reduction.
(With inputs from agencies.)
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