European shares ease from peak; banks, miners boost UK stocks


Reuters European stocks eased from alltime highs on Tuesday ahead of a key U.S. inflation reading, but British banks kept UKs FTSE 100 afloat after a central bank move to scrap curbs on dividends.

The panEuropean STOXX 600 index slipped 0.1 after hitting a record high in early trading.

Barclays, HSBC, and Lloyds Banking Group rose between 1.1 and 1.8 after the Bank of England scrapped pandemicera restrictions on dividends from top lenders.

UKs FTSE 100 rose 0.3, while other main regional indexes fell.

Investors are awaiting U.S. consumer price data for June set to be released later in the day to see if the recent rise in prices is persistent and strong enough to spur a fasterthanexpected policy tightening by the Federal Reserve.

We are less interested in when the peak is and much more interested in how enduring price pressures are likely to be, RBC Capital Markets analysts wrote in a note.

We have no doubt that this peak narrative is likely to be all the talk on Tuesday, but that misses a much bigger point sticky prices are likely to linger for quite some time.

European Central Bank President Christine Lagarde said on Tuesday it has pledged to be persistent and will not repeat its past mistake of tightening policy too early.

Among individual stocks, Finnish telecom equipment maker Nokia jumped 6.6 after it said it planned to raise its fullyear outlook.

Swiss watchmaker Swatch Group rose 2.0 as it returned to profit in the first six months of 2021 and its…

Bank of England Scraps PandemicEra Curbs on Bank Dividends

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