European stocks fell slightly on Tuesday as investor sentiment was hit by comments from U.S. Federal Reserve officials that signaled a cautious approach to monetary policy, dampening hopes for a potential rate cut. The STOXX 600 index fell 0.3% in early trading, despite gains in healthcare stocks, which were overshadowed by losses in the banking and utilities sectors.
Investors now await the release of the minutes from the Federal Reserve’s last policy meeting and earnings from Nvidia, both due on Wednesday, which will be closely watched to see whether the recent positive trend in US and European stocks can be maintained.
Federal Reserve Vice Chairman Philip Jefferson and several other officials expressed hesitation on Monday about announcing a definitive move toward the central bank’s 2% inflation target, favoring a continued cautious stance on policy. That uncertainty has contributed to the gloomy market mood.
Contrary to the cautious sentiment, recent data showed that German producer prices fell more than expected in April, which is generally seen as a positive signal to ease inflation concerns.
Among individual stocks, AstraZeneca rose 0.9% after announcing a revenue target of $80 billion by 2030, aiming for significant growth of around 75%. Meanwhile, Italy's largest insurer, Generali, fell 3.3% after announcing first-quarter results.
In the energy sector, contractor Saipem saw its shares rise 3.5% after securing new contracts worth $3.7 billion, signaling strong performance in that segment.
Source: Investing
