European bourses tracked sideways midday Wednesday as traders awaited the pending consumer price index, or CPI, report from Washington, which could provide clues to the stance of the US Federal Reserve. In the midst of this market activity, bank and retail stocks emerged as the front runners, showing positive gains, while technology and property sectors experienced a slowdown. Traders also kept a close watch on Wall Street futures, which signaled declines, and noted lower closes overnight on Asian exchanges. Francois Villeroy de Galhau, Governor of the Bank of France and member of the European Central Bank Governing Council, commented on the possibility of further interest rate cuts, reflecting on France's current inflation rate, which stands around 1.5%.
This indicates that monetary easing may be on the horizon, as the central banker shared insights during an interview with Radio France. The pan-continental Stoxx Europe 600 Index maintained steady performance mid-session. The Stoxx Europe 600 Technology Index decreased by 0.9%, while the Stoxx 600 Banks Index posted a gain of 0.8%.
The Stoxx Europe 600 Oil and Gas Index increased by 1.2%, although the Stoxx 600 Europe Food and Beverage Index saw a decline of 0.3%. Moreover, the REITE, a European REIT index, faced a drop of 1.1%, while the Stoxx Europe 600 Retail Index improved by 0.4%. Examining national market indexes, Germany's DAX rose by 0.2%, the FTSE 100 in London remained flat, the CAC 40 in Paris gained 0.2%, and Spain's IBEX 35 increased by 0.4%. In fixed income, yields on benchmark 10-year German bonds increased, nearing 2.39%. Front-month North Sea Brent crude-oil futures saw a 0.7% rise, reaching $72.42 per barrel. The Euro Stoxx 50 volatility index decreased by 1.8% to 17.63, indicating below-average volatility projected for European stock markets over the next 30 days.
This reading signals a positive outlook; typically, a reading above 20 suggests increased market turbulence, while figures below 20 imply calmer conditions..