Posted By Uma Rajagopal
Posted on November 29, 2024
(Reuters) – Europe’s STOXX 600 opened on a muted note on the final day of a turbulent week, with investors assessing France’s political uncertainty and awaiting euro zone inflation data to see if a bigger European Central Bank rate cut is on the cards for December.
The pan-European main stock index was flat at 0815 GMT, bracing for its fifth weekly decline in six.
The index was still on track for a modest monthly gain in three, even though the possibility of Europe being a U.S. tariff target and France’s political woes have dampened investor sentiment towards the bloc, among other factors.
France’s CAC 40 was largely flat on the day and down 1% for the week. Prime Minister Michel Barnier dropped plans to raise electricity taxes in his 2025 budget, bowing to far-right pressure.
French lenders weighed on the overall banks index, while basic resources led sectoral gainers, boosted by a 3% rise in miner Anglo American after a Jefferies rating upgrade.
Meanwhile, French inflation for November edged up from October, in line with expectations, while German retail sales fell more than expected in October.
Lower-than-expected euro zone inflation data during the day could prompt bets of a 50-basis-point European Central Bank rate cut in December.
(Reporting by Joao Manuel Mauricio in Gdansk; Editing by Janane Venkatraman)
