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European stocks pull back as inflation nerves grip markets


LONDON — European stocks are expected to open in negative territory amid nervousness over inflation, with the next reading of U.S. inflation due at the end of the week.

The U.K.’s FTSE index is seen opening 39 points lower at 7,576, Germany’s DAX 113 points lower at 14,540, France’s CAC 40 down 54 points at 6,502 and Italy’s FTSE MIB 186 points lower at 24,346, according to data from IG.

International markets are gearing up for key U.S. data releases this week, including the latest inflation reading on Friday.

May’s consumer price index in the U.S. is expected to be just slightly cooler than April, and some economists are expecting it could confirm that inflation has peaked.

The University of Michigan consumer sentiment index, also due Friday, will also be closely watched by investors.

The U.K. trading session will be interesting to watch on Tuesday amid political turbulence in the country. On Monday evening, U.K. Prime Minister Boris Johnson survived a vote of confidence triggered by his own lawmakers amid increasing dissatisfaction in his leadership.

Some 211 Conservative Party lawmakers voted in favor of the prime minister on Monday, while 148 voted against him. Johnson needed the support of a simple majority of 180 MPs to win the vote, but the figure of 148 was worse than many expected.

It is also worse than the result of a similar vote that former leader Theresa May faced in 2018. She resigned as prime minister just six months later.

It’s a quiet day on the data and earnings front in Europe, although Germany’s latest industrial orders figures are due to be released.

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