European stock exchanges decline as expectations of a rate cut ‎diminishes ‎

European stocks began trading on Tuesday lower as investors’ expectations for interest rate cuts declined in the wake of recent statements by European Central Bank officials, while Lindt & Sprüngli shares jumped thanks to optimistic data.

According to Reuters, the European Stoxx 600 index fell 0.7% by 0810 GMT, declining for the second session in a row.

François Villeroy de Gallo, Governor of the French Central Bank in Davos, said that the European Central Bank cannot yet declare victory over inflation, but its next step is likely to be to cut interest rates at some point this year, in addition to a series of comments. Recently issued by policymakers to postpone expectations of interest rate cuts

Traders now see a 25 percent chance of a first interest rate cut in March, down from more than 30 percent the previous week.

Among the main stock movers, Lindt & Sprüngli shares jumped 4.2% after the Swiss chocolate maker said that its sales growth in 2023 exceeded market expectations, supported by rising product prices.