European stocks decline, UK CPI weighs

UK CPI worse than expectations

Data released this morning by the UK Office for National Statistics showed that the consumer price index rose 10.1%, compared with the previous reading of 10.4%, and expectations at 9.8%. Whilst the core CPI stayed the same near 6.2%.

The GBP/USD fell with the pair trading near $1.240. Despite strong wage data in the UK supporting further rate hikes.

In the context of rate hikes, overnight James Bullard a US Fed official called more rate hikes from the Fed and tuning down the likelihood of a near recession.

European stocks open the third session of the week with a decline

European stocks fell as investors digest UK’s peaking inflation and wait for earning reports. The DAX index dropped by 0.30% to 15,883 points, while the FTSE index fell near 7,886 points and the French CAC index also saw a decline to 7,539 points.

On the data front, the ZEW Institute reported negative economic confidence data for both Germany and the Eurozone. Germany's economic confidence index decreased by 4.1, compared to the previous reading, which had shown an increase of 13.0 points.

In the coming days, markets will shift focus to the release of manufacturing and services sector indicators from the Eurozone, with expectations suggesting recovery in these sectors.

Gold falls below strong support near $2000

Gold retreated from $2000 mark after being fueled by strong economic data from China which showed better-than-expected growth and increasing expectations for demand of metals and goods from the world's largest consumer.

The yellow metal broke below $2000 levels and stabilized near $1991. Whilst Investors are currently anticipating important economic data releases from the US this week, including weekly unemployment claims and performance indicators for major sectors, which will offer insights into the performance of the US economy in the beginning of Q2.