**European Stocks Dip After a Dismal Earnings Season and Gloomy Data**
European equities plunged on Tuesday, marking their first monthly decline since October as investors grappled with a deluge of disappointing earnings reports and disheartening economic data.
**Slumping Sectors**
The pan-European Stoxx 600 index shed 0.6%, dragged lower by a dismal performance across most sectors. Automobiles tumbled 4.3%, while basic resources nosedived 1.14%. Healthcare stocks emerged as a rare bright spot, advancing 0.2%.
**Inflation Stagnant, GDP Grows**
Eurozone inflation remained unchanged at 2.4% in April, meeting market expectations. Core inflation, excluding volatile items like energy and food, hovered at 2.7%.
Meanwhile, the bloc’s gross domestic product (GDP) expanded by 0.3% in the first quarter of the year, modestly surpassing a 0.1% contraction in the final quarter of 2023.
**April’s Monthly Dip**
For the month of April, the Stoxx 600 index faltered by 1.49%, its first monthly retreat since October.
**Overnight Market Movements**
In Asia-Pacific, markets generally climbed on Tuesday, tracking positive sentiment on Wall Street. Investors analyzed China’s manufacturing purchasing managers’ index (PMI) for April.
**US Stock Market Wobbles**
US stocks faltered amid underwhelming earnings results and disappointing inflation data. Investors braced for the release of earnings from tech giants, the Federal Reserve’s interest rate decision on Wednesday, and the eagerly anticipated jobs report.
Hawkish Fed Expectations
The US central bank is widely anticipated to maintain interest rates steady. However, market participants will closely monitor Fed Chair Jerome Powell’s post-meeting remarks, anticipating a hawkish tone in light of recent inflationary pressures.
Data sourced from: cnbc.com
