Stocks Pause as China Rally Continues to Fade – Europe Market Wrap

Global equities paused on Tuesday as the momentum from China’s latest stimulus commitment faded, as traders await critical US inflation data later this week

The S&P 500 and Nasdaq 100 contracts remained steady, but the Stoxx 600 index in Europe snapped an eight-day winning streak. European miners and luxury names fell a day after being bolstered by Beijing’s commitment to loosen monetary policy. The developments come after a lacklustre day in Asia, in which Chinese equities opened higher before losing the majority of their gains before the close.

Investors are waiting for Wednesday’s consumer price index print in the United States, which is the penultimate key price data before the Federal Reserve’s policy meeting. Any signal that progress on the inflation front has halted might significantly reduce the prospects of a third consecutive rate lowering.

This week is a big one for policymakers, with the European Central Bank set to drop rates for the fourth time this year, amid a weakening economic outlook and political uncertainty in France and Germany. The Swiss National Bank is also expected to lower rates on Thursday.