European shares trade cautiously ahead of Fed rates decision

European shares fell on Tuesday as investors digested fresh data indicating a slowdown in the eurozone economy ahead of the bloc’s monetary policy decision next week.

Europe’s region-wide Stoxx 600 was down 0.1 percent, while France’s Cac 40 fell 0.3 percent and London’s FTSE 100 shed 0.4 percent, extending losses from the previous session.

Germany’s DAX declined 0.2 percent as data from the country’s Federal Statistics Service showed industrial orders unexpectedly fell 0.4 percent in the month to April, well below the forecast from economists polled by Reuters. indicates an increase of 0.3 percent.

Meanwhile, the eurozone’s statistics agency Eurostat reported that retail sales volumes fell 2.6 percent year-on-year in April, compared with a 3.3 percent drop in the previous month, as the bloc’s higher borrowing costs weighed on domestic consumption. Kept putting

Markets expect the European Central Bank to raise its benchmark interest rate from the current 3.25 percent at a meeting of policymakers next Thursday.

US futures were muted, with contracts tracking Wall Street’s benchmark S&P 500 shedding 0.1 percent, while those tracking the tech-heavy Nasdaq 100 were flat ahead of the New York open.

A day earlier, survey data from the Institute for Supply Management pointed to a slowdown in the US services sector in May, which could prompt the Fed to resist raising rates when policymakers meet next Tuesday and Wednesday. Are.

Most investors expect the central bank to pause its tightening operation at the next meeting before resuming in July.

In government debt markets, the yield on the 10-year US Treasury note was down 0.03 percentage points at 3.67 percent, and the short-dated two-year yield was down 0.03 percentage points at 4.46 percent.

The Reserve Bank of Australia raised interest rates to 4.1 percent from 3.85 percent on Tuesday, leaving markets with expectations of a freeze and signaling that further tightening may be needed.

Inflation has passed its peak but remains “very high” at 7 percent, policymakers said, as they spent less than a year in efforts to bring the rate of price growth back to 2 to 3 percent. Raised rates for the 12th time. target range.

The Australian dollar was trading up 0.63 per cent at $0.67 against the US dollar, while the S&P/ASX 200 index fell 1.2 per cent.

Markets in Asia were muted, as Hong Kong’s Hang Seng index lost 0.1 per cent, while the CSI 300 index of Shanghai- and Shenzhen-listed shares were down 0.9 per cent.

Japan’s benchmark Topix ended lower with a gain of 0.7 per cent, trimming early losses.

Japanese real wages contracted for a 12th straight month, according to data released on Tuesday, reinforcing expectations that the Bank of Japan will maintain its extremely loose monetary stance.