European shares slip in earnings deluge ahead of inflation data

European shares edged lower on Tuesday as investors parsed a raft of mixed earnings reports from industry heavyweights like Mercedes-Benz and HSBC, while also keeping an eye out for economic data, including the April euro zone's inflation numbers. The continent-wide STOXX 600 stocks index slipped 0.2% as of 0817 GMT, set to log its first monthly decline in six, knocked down by record-high interest rates, Middle East tensions and uncertainty about the European Central Bank's monetary policy outlook.

European shares edged lower on Tuesday as investors parsed a raft of mixed earnings reports from industry heavyweights like Mercedes-Benz and HSBC, while also keeping an eye out for economic data, including the April euro zone's inflation numbers.

The continent-wide STOXX 600 stocks index slipped 0.2% as of 0817 GMT, set to log its first monthly decline in six, knocked down by record-high interest rates, Middle East tensions and uncertainty about the European Central Bank's monetary policy outlook. Miners and energy are on track to become the top sectoral performers this month, while financial services and insurers are the worst hit.

On the day, the automobile sector shed 1.5%, with Mercedes-Benz declining 3.7% after a first-quarter earnings fall, Stellantis dropping 1.8% on a plunge in first-quarter revenue and Volkswagen losing 2.2% after reporting a lower first-quarter operating profit. At the top of investors' watch list are the bloc-wide flash April inflation and first-quarter GDP data during the day as multiple ECB policymakers have flagged a dimming likelihood of rate cuts beyond a likely first one in June.

"So many members of the ECB's Governing Council have recently announced a rate cut in June that hell would have to freeze over for it to be called off," Commerzbank Research analysts wrote. "This round of inflation numbers is not what matters... It's more about later numbers when it comes to how quickly and how many more rate cuts may follow."

Dutch policymaker Klaas Knot

told Nikkei that euro zone inflation is falling towards 2% and geopolitical stress poses only moderate risks, but the ECB should still exercise caution beyond a June rate cut. The much-awaited May policy decision from the U.S. Federal Reserve on Wednesday is also on investors' radar.

Among others, HSBC rose 2.9% after the Asia-focussed lender announced its quarterly results, a share buyback plan and CEO Noel Quinn's surprise retirement. Vonovia climbed 5.6% following the largest German real estate group's return to profit in the first quarter.

Finnish engineering group Cargotec jumped 12.8% to the top of the STOXX 600 after first-quarter results. Logitech advanced 9.2% after the Swiss-American computer peripheral maker's better-than-expected full-year outlook and fourth-quarter results beat.

Satellite company SES shed 10.4% on agreeing to buy all shares of Intelsat Holdings for about $3.1 billion and reporting first-quarter results. Prudential shed 4.7% after the British insurer's annual premium equivalent sales for CITIC Prudential Life, its Chinese Mainland joint venture, fell 17% in the first quarter.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)