European shares edge up as global growth fears return

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European shares edged higher on Tuesday as investors shrugged off the political fallout from an armed uprising in Russia and reiterated their concerns over the outlook for the global economy.

Europe’s region-wide Stoxx 600 gave up most of its early gains in flat trade. France’s CAC 40 and London’s FTSE 100 were up 0.2 percent.

Investors await the start of the European Central Bank conference in Portugal, where President Christine Lagarde’s introductory speech will be scrutinized for any indication of future monetary policy in the eurozone.

Economists said the ECB would be affected by inflation data due on Friday. Price growth is expected to be 5.7 per cent by June, up from 6.1 per cent a month ago.

Yet rate-setters are likely to remain concerned about the underlying pricing pressures in the sector. Core inflation, which removes volatile food and energy prices, is expected to accelerate this month, prompting the ECB to tighten further.

Wall Street futures edged higher, with contracts tracking the benchmark S&P 500 index rising 0.3 percent, while contracts tracking the tech-heavy Nasdaq 100 rose 0.4 percent ahead of the New York open.

Oil prices held steady after a weekend armed uprising in Russia raised serious questions about Putin’s regime’s approach and cast doubt on crude output from one of the world’s top suppliers.

International benchmark Brent crude was trading 0.4 per cent higher at $74.53 a barrel, while US marker West Texas Intermediate rose 0.5 per cent to $69.73.

In China, equity markets were up, with Hong Kong’s Hang Seng index rising 1.9 percent and China’s CSI 300 rising 0.9 percent.

Investors welcomed assurances that Chinese authorities intended to support growth in the world’s second-largest economy, which has been struggling to pick up momentum since reopening this year from the pandemic.

Chinese Premier Li Qiang delivered a speech at the annual meeting of the World Economic Forum’s New Champions, known as “Summer Davos”, in which he reiterated Beijing’s intention to create more effective policies to boost domestic demand. pointed up.

Policymakers cut benchmark interest rates this month in an effort to stimulate growth, but economists expect more support measures in the coming months.