European stocks decline with focus on Eurozone inflation data

European stocks fell on Tuesday, as French stocks lost some of the gains of the previous session, driven by relief after the first round of parliamentary elections, while investors focus on inflation data in the euro zone in search of signals about the path the European Central Bank will take regarding interest rates.

The STOXX 600 index fell 0.5%, touching its lowest level in two weeks, and the French CAC 40 index fell 0.6%. It rose 1.1% yesterday, Monday.

Annual inflation in the euro zone fell to 2.5% in June 2024 after briefly accelerating to 2.6% in May, according to forecasts.

Prices rose at a slower pace for non-energy industrial goods (2.5% vs. 2.6%) and energy (0.2% vs. 0.3%), while inflation remained steady for non-energy industrial goods (at 0.7%) and services (at 4.1%).