Stock Market Today - 9th of May

Investors are anticipating that European stock markets will begin cautiously on Tuesday, ahead of the BoE policy meeting.

In preparation for the most recent U.S. inflation report and the Bank of England's policy-setting meeting, investors are anticipating that European stock markets will begin cautiously on Tuesday.

With results from the banking sector showing some resilience, European shares gained from largely favorable profits so far this quarter, particularly given the continued unrest across the pond.

Tuesday will see the release of other financial reports from companies including Fresenius and Direct Line, while Daimler Truck has confirmed good sales growth in the first quarter thanks to improved supply and demand.

Despite this, the focus may well shift elsewhere as investors look at the most recent trade statistics from China, a significant market for the top exporters in the eurozone.

Data made public earlier on Tuesday revealed that China's imports plunged in April by an annual 7.9%, whereas exports climbed by 8.5% in the same period following a surprising rise of just under 15% in March.

This suggests that amid the relaxation of COVID limitations, the second-largest economy in the world is recovering unevenly and at a slower rate.

Additionally, the Bank of England, which meets on Thursday, will be the center of this week's attention out of the central banks.

Since the U.K.'s inflation rate is the highest among all the main European markets at 10.1%, officials are likely to approve a further 25 basis point increase as a result.

Tuesday saw a slight decline in oil prices as cautious trade took place in advance of the highly anticipated U.S. inflation data.

(investing.com, reuters.com)