European stocks slide amid Fed caution

European stocks edged lower on Tuesday, mirroring losses in Asian markets as US Federal Reserve officials urged caution regarding potential interest rate cuts, dampening investor optimism, according to Reuters.

The pan-European STOXX 600 index declined by 0.3 per cent as of 0710 GMT, driven by losses in banks and utilities despite gains in healthcare stocks.

Investors are eagerly awaiting the release of minutes from the Fed’s last policy meeting and chip giant Nvidia’s earnings on Wednesday to gauge the sustainability of recent record highs in US and European equities.

The cautious tone from Fed officials, including Vice Chair Philip Jefferson, regarding inflation reaching the central bank’s 2 per cent target contributed to market sentiment.

Meanwhile, German producer prices fell more than expected in April, further influencing market movements. AstraZeneca announced its aim to achieve revenue growth of approximately 75 per cent to $80 billion by 2030, leading to a 0.9 per cent increase in its stock.

Conversely, Italy’s leading insurer, Generali, saw a 3.3 per cent decline after reporting first-quarter results, while energy contractor Saipem surged 3.5 per cent on securing new contracts valued at $3.7 billion.