inflation data, FTSE 100, DAX, CAC 40

Ratings agency S&P Global has made 26 negative ratings actions, including eight downgrades, five CreditWatch negative placements and 13 outlook revisions due to tariffs since the start of March through to the end of May.

Data from S&P published in a report Tuesday showed 24 of the 26 entities were corporations, 18 of which were based in the U.S., including Fender Musical Instruments Corp. — downgraded from stable to negative — and Conair Holdings — downgraded to developing from negative.

Outside of the U.S., Slovakia’s sovereign rating was cut to negative from stable, while China’s Geely Holding, automaker Volvo’s parent company, was also cut to negative from stable.

European firms impacted included Dutch chemicals firm Pearls, and window coverings manufacturer Hunter Douglas Finance.

— Jenni Reid

Fund manager Giles Parkinson of Trinity Bridge sold shares of luxury retailer Moncler in early March and avoided steep losses in the weeks following as the stock slid.

Parkinson’s caution wasn’t borne out of analyst reports, hushed industry whispers, or traditional financial modeling, but from what he called a “good short-term guide to luxury industry writ large”: the spending patterns of international tourists.

His thesis was confirmed when Moncler reported its first quarter 2025 results on April 16. While not disastrous, it painted a clear picture of a company navigating choppier waters.

Read more about how the fund manager arrived at that decision to sell the stock here.

The euro was 0.2% lower against the U.S. dollar and 0.07% down against sterling at 10:42 a.m. in London, after data showed inflation in the euro zone eased to 1.9% from 2.2% in May. The rate was lower than the 2% expected.

Germany’s 10-year bond yield, the benchmark for the euro area, was a little over 2 basis points lower at 2.497%.

European stock markets remained largely in the red, with the regional Stoxx 600 index down 0.2%.

“We expect inflation to fall further in the coming months, leaving the headline rate comfortably below 2% in the second half of the year,” Jack Allen-Reynolds, deputy chief euro zone economist at Capital Economics, said in a note.

“This won’t have much of a bearing on Thursday’s ECB decision, which already looked almost certain to be a 25bp cut. But May’s inflation data strengthen the case for another cut at the following meeting in July,”

— Jenni Reid

Sweden’s Finance Minister Elisabeth Svantesson has told CNBC that Washington’s seesawing over global trade and tariffs is worse than levies themselves.

“The most constant right now seems to be the sudden shifts of [U.S. President] Mr. Trump,” she told CNBC’s “Europe Early Edition.”

“He’s changing almost on a daily basis what will happen, and that’s of course really costly for our companies, for our households and for the global economy. So right now, the uncertainty and the unpredictability is worse than tariffs,” she said.

— Holly Ellyatt

Inflation in the 20-member euro zone eased to 1.9% in May, coming in below analyst expectations and also under the European Central Bank’s target of 2%.

The headline decline, assisted by a steep monthly drop in services inflation from 4% in April to 3.2% in May, further builds the case for a widely anticipated interest rate cut from the European Central Bank when it meets on Thursday.

Read more here.

— Ruxandra Iordache

Shares of Starlink competitor Eutelsat rose by more than 6% as the company is reportedly in discussions to raise 1.5 billion euros ($1.7 billion) from investors.

Bloomberg News reported that Eutelsat, which runs the OneWeb satellite constellation, is in talks with the government of France, the United Kingdom, and shipping company CMA CGM to raise funds to build its low-earth orbit network.

The deal would take the French government’s stake in the company to 30% from the current 13.59%, Bloomberg said.

 — Ganesh Rao

The pan-European Stoxx 600 index has turned lower after rising in early trade. The benchmark was lower by 0.2% at 8.30 am in London.

The U.K.’s FTSE 100, CAC 40 and Germany’s DAX were also in the red by 0.1%.

— Ganesh Rao

Swiss bank Julius Baer plans to cut costs by 130 million Swiss Francs ($158.8 million) by 2028 as part of its strategic review.

The bank said that the savings will be in addition to its…