European Shares Decline On US Rate Concerns

(RTTNews) - European stocks edged lower on Tuesday following cautious comments from Federal Reserve officials on inflation and the interest rate outlook.

In economic releases, the euro area current account surplus increased in March on improving primary income, the European Central Bank reported.

The current account balance posted a surplus of EUR 36 billion in March compared to a EUR 29 billion surplus in February. In the same period last year, the balance was in EUR 13 billion surplus.

The surplus on goods trade fell to EUR 33 billion from EUR 34 billion in the prior month. Likewise, the services surplus decreased to EUR 5 billion from EUR 7 billion.

German producer prices decreased 3.3 percent on a yearly basis in April, faster than the 2.9 percent fall in March, data from Destatis revealed. Economists had forecast an annual fall of 3.2 percent.

On a monthly basis, producer prices advanced 0.2 percent, the same pace of increase as seen in March and also matched economists' expectations.

The pan European STOXX 600 dropped 0.4 percent to 521.82 after gaining 0.2 percent on Monday.

The German DAX dipped half a percent, France's CAC 40 shed 0.8 percent and the U.K.'s FTSE 100 was down 0.3 percent.

Eurozone sovereign bond yields climbed for the second day as investors looked ahead to the release of business activity data later this week for fresh clues on the European Central Bank's monetary path.

Italian insurer Generali tumbled 3.2 percent after Q1 profitability was slightly weaker in its property and casualty business.

Energy contractor Saipem jumped 3.6 percent on securing three new contracts worth $3.7 billion.

Miners fell on profit taking after recent gains helped by China's property support measures. Anglo American and Antofagasta both were down around 1 percent.

AstraZeneca gained about 1 percent after the drug maker said it is aiming for $80 billion in total revenue by 2030.

Vodafone dropped 1 percent. Stephen van Rooyen has been appointed Chief Executive Officer of VodafoneZiggo, effective from September 2024.

Greencore shares soared 20 percent. The foods maker announced a share buyback after delivering first-half profit before taxation of 14.7 million pounds, compared to last year's loss of 6.2 million pounds.

Kontron rallied 3.2 percent. The German IoT technology company said it had received a major order to supply smart wallboxes.