European Stocks Dip Ahead of US CPI Data Release

European stocks experienced a slight decline on Tuesday as investors adopted a cautious stance in anticipation of the release of US consumer price data, a critical determinant of the US Federal Reserve’s interest rate trajectory.

The European STOXX 600 index edged 0.2% lower from its two-year peak as investors assessed the latest corporate earnings reports. Technology shares, particularly sensitive to interest rate movements, dipped to a one-week low of 1.3%.

Market attention is focused on the US January Consumer Price Index (CPI) report, scheduled for release at 1330 GMT, which will offer insights into the potential timing of interest rate adjustments by the central bank.

Additionally, investors await the results of the ZEW Institute survey on corporate sentiment in Germany and the eurozone, due at 1000 GMT. TUI shares surged 6.7% to lead the STOXX 600 after the European travel and tourism giant posted better-than-expected first-quarter figures, turning profitable amid robust demand.

ThyssenKrupp Nocera shares climbed five percent following the German hydrogen company’s announcement of a more than one-third increase in quarterly sales, driven by rising demand for electrolysis technology.

Meanwhile, Randstad shares saw a modest 0.2% uptick after the Dutch recruitment firm reported core profits in line with market expectations for the fourth quarter of the year.

The market landscape remains dynamic as investors digest a mix of corporate results and economic indicators, with sentiment influenced by evolving expectations surrounding central bank policies and global economic recovery.