European Markets Maintain a Steady Eye Amid Inflation Data and French Government Fears

European shares slipped on Friday as investors anxiously awaited significant economic data from the euro zone and the U.S. The reports are expected to offer clues on how and when interest rate cuts might be implemented in both regions.

The STOXX 600 index dropped by 0.2%, settling at 552.41 points by 0703 GMT. If the trend persists, this marks the index's first week in decline after three consecutive weeks of growth. Concerning factors include France's possible governmental collapse and discussions around the independence of the U.S. Federal Reserve.

Economic prospects dimmed as French consumer prices grew slightly lower than expected, spotlighting upcoming German data and U.S. Personal Consumption Expenditures (PCE) as focal points. The PCE, an inflation indicator favored by the Federal Reserve, could reveal tariff impacts on U.S. prices. Anticipated reductions in U.S. rates next month, as indicated by Federal Reserve Chair Jerome Powell, further influenced market actions. Remy Cointreau's shares climbed 1% post-announcement that the company reduced its expected tariff impacts after a new U.S.-EU trade deal.

(With inputs from agencies.)