Focus on U.S. Consumer Price Index (CPI) Report and Federal Reserve Policy Meeting
All eyes are now on the forthcoming US Consumer Price Index (CPI) report, set to be released at 1330 GMT. Simultaneously, the Federal Reserve will commence its two-day policy meeting. The CPI report’s findings will likely influence the central bank’s decision-making process regarding interest rates.
UK Wage Growth Slows, But Bank of England Maintains Stance on Interest Rates
Recent data indicates a significant slowdown in British wage growth, the most significant deceleration seen in nearly two years. Nevertheless, pay rates continue to rise, prompting the Bank of England to maintain its strict stance against interest rate cuts. Despite this wage stagnation, the UK’s benchmark index climbed by 0.8% to achieve its highest point in almost two months, outperforming other European indices.
Upcoming Policy Decisions from European Central Bank and Bank of England
Investors remain closely attuned to upcoming policy decisions from the European Central Bank and Bank of England, both scheduled for Thursday. With mounting evidence of inflationary pressures and an economic slowdown, market participants are increasingly speculating about a potential peak in policy tightening and future rate cuts.
Stock Market Highlights
Several noteworthy stock market movements were observed during the trading session. Medical technology firm Carl Zeiss Meditec saw its stock surge by 7.2% following the release of higher annual revenue figures and an optimistic forecast. Banco BPM, an Italian bank, also experienced a notable increase of 3.1% after pledging moderate profit growth until 2026. Swedish defense group Saab and Norwegian aluminium maker Hydro witnessed stock gains of 3% and 2.9%, respectively, due to positive upgrades by Citigroup and J.P. Morgan analysts. However, telecommunications equipment maker Nokia initially experienced a decline of 2.6% before recovering. The company lowered its 2026 comparable operating margin target, which triggered investor concerns.
Healthcare Sector and Hargreaves Lansdown’s Performance
The healthcare sector faced challenges during the trading session, with a 0.3% decline. Novo Nordisk, the producer of the popular obesity drug Wegovy, experienced a notable fall of 2.4%. This decline was influenced by a recent study demonstrating that patients who ceased using Eli Lilly’s weight-loss drug, Zepbound, regained a significant amount of weight after nearly a year. Furthermore, Hargreaves Lansdown, an investment platform, suffered a significant drop of 7.2% on the STOXX 600 index, following expressed concerns by Britain’s market watchdog regarding excessive interest rates and fees.
Nordic Semiconductor Announces CEO’s Departure
Nordic Semiconductor, a Norwegian fabless chipmaker, witnessed a 4.5% decline after CEO Svenn-Tore Larsen announced his departure after serving for 22 years.