Market Data 
Investing.com – European stock markets drifted lower Tuesday, with investors awaiting the latest regional inflation data for clues towards the timing of future European Central Bank interest rate cuts.
At 03:10 ET (07:10 GMT), the in Germany traded 0.6% lower, the in France fell 0.6% and the in the U.K. dropped 0.4%.
Eurozone inflation due
The eurozone is set to release June inflation data later in the session, with economists expecting a slight slowdown in both the headline and underlying measures after an uptick in May.
The is expected to grow 2.5% on an annual basis, a drop from 2.6% in May, while the , which excludes volatile food and energy prices, is seen at 2.8% annually in June, down from 2.9%.
The cut interest rates in June, starting its march lower before the U.S. Federal Reserve, but made no commitment about any further moves, arguing inflation was still too high.
“If we have no major negative surprises, then based on our forecasts, I would say there is room for a second cut,” Pierre Wunsch, Belgium’s central bank governor said in an interview on Monday.
But even this second cut was not urgent, he said, and the ECB could wait until its next projections are due out in September.
Politics in spotlight
Politics will also be in the spotlight this week, after the far-right National Rally won the first round of the French parliamentary elections on Sunday.
The chances of eurosceptic, anti-immigrant RN winning power next weekend though remain uncertain, and will depend on the political dealmaking by its rivals over the coming days.
The U.K. also goes to the polls on Thursday, with expectations of a landslide win for the opposition Labour Party running high.
Such a result could see a return to stability after heavy political turbulence during the Conservatives’ 14-year rule, and could also result in the rebuilding of trade links with Europe.
Sainsbury’s sales growth slowed
The retail sector was in the spotlight in Europe Tuesday.
J Sainsbury (LON:) stock fell 1.4% after the British supermarket chain reported a slowing in sales in the first quarter, partly because of a big drop at its Argos chain.
Like-for-like sales growth, excluding fuel, slowed to 2.7% in the 16 weeks to 22 June, from 4.8% in the previous quarter.
Sodexo (EPA:) stock fell 3.2% after the French food caterer reported slightly lower than expected third-quarter sales on Tuesday.
However, the group, which will provide catering for the Paris Olympic Games and the Paralympics this summer, confirmed its 2024 outlook.
Crude close to two-month highs
Crude prices edged higher Tuesday, holding near two-month highs on expectations for rising fuel demand during the U.S. summer.
By 03:10 ET, the futures (WTI) traded 0.1% higher at $83.48 per barrel, while the contract climbed 0.2% to $86.78 per barrel.
Both benchmarks climbed to their highest levels since the end of April during the previous session.
Gasoline demand in the U.S., the world’s biggest oil consumer, is expected to ramp up as the summer travel season picks up with the Independence Day holiday this week.
Traders will be looking at the latest data on U.S. crude stockpiles from the industry body later in the session, as well as possible disruptions from Hurricane Beryl on U.S. oil refining and offshore production in the Gulf of Mexico.
