While the improvement of the epidemiological situation in China led to an easing of restrictions and a positive reaction in the markets, the new sanctions against Russia drove oil prices upward. According to the agreement reached on Monday by EU leaders, 90% of the Russian crude imports will be banned by the end of the year.
ECB chief economist Philip Lane confirmed the sequence of two quarter-point rate hikes in July and September and called them a “benchmark pace” in an interview on Monday
Tuesday morning, European stocks edges down awaiting the release of the euro area inflation data. In early trade, the pan-European Stoxx 600 fell 0.5%, tech stocks dropped 1.7% and oil and gas stocks rose 1.2% due to surging oil prices.
Eurostat reported that annual consumer price index jumped to 8.1% in May 2022, higher than the forecast of 7.7% and surpassing last month’s reading at 7.4%. According to flash estimates, Estonia (20.1%) and Lithuania (18.5%) continues to be among the EU countries with the highest annual inflation rates. On the other hand, Malta (5.6%) and France (5.8%) registered the lowest rates. Prices rose faster for energy (39.2%) and food, alcohol & tobacco (7.5 %). Core inflation increased to 3.8% in May from 3.5% the prior month.
After the inflation readings, European stocks fell slightly, and Euro against the US dollar trades at 1.07.