Europe midday: Shares flat ahead of US CPI
By Frank Prenesti
Date: Wednesday 11 Jun 2025
(Sharecast News) - European shares were flat on Wednesday as the US and China reached an agreement on trade after a second day of high-level talks in London and traders looked ahead to US inflation data.
The pan-regional Stoxx 600 index was down 0.02% s, with major bourses mixed. Germany's DAX was down 0.03%, while France's CAC 40 bucked the trend to gain 0.12%.
China's trade envoys pledged to ease curbs on exports of rare earth minerals to the US, while Washington agreed to lift some export controls on semiconductor exports. The agreement still needs to be signed off by Presidents Trump and Xi and do not address the broader trade war between the two countries.
Traders will also be watching for US inflation numbers and a spending review from the UK government, widely expected to see sharp cuts in some public spending amid claims of a return to austerity. Reports suggested billions were to be committed to build social housing, boosting shares in Vistry and Bellway.
"Attention will now switch back to the US economy with the latest release of consumer price Index numbers later today. The headline number is expected to have risen by 0.2% and the core number which excludes food and energy by 0.3%, leading to an overall acceleration from 2.3% in April to 2.5% in May," said Interactive Investor head of markets Richard Hunter.
"There are two large caveats accompanying the release. First of all, a high reading would likely be market negative as it would strengthen the case for the Federal Reserve to stay put on interest rates on the inflationary side of its dual mandate."
"Secondly, it is widely expected that the real tariff impacts will not begin to show until June, which lessens the importance of this particular reading, with the likes of clothing, car and food prices likely to have been most affected."
In equity news Zara owner Inditex slumped after posting weaker-than-expected quarterly sales and signalling a slower start to the summer season than last year. Peers H&M and Zalando were lower on the news.
Reporting by Frank Prenesti for Sharecast.com
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