European markets fall as ECB members push back rate cut expectations at Davos (EUR:USD)

London (UKX) -0.6%

Germany (DAX:IND) -0.8% Inflation rate in Germany increased to 3.70% in December from 3.20% in November.

France (CAC:IND) -0.7%

The pan-European Stoxx 600 (STOXX) shed 0.7% on Tuesday as investors focused on comments from the World Economic Forum in Davos, Switzerland, where European policymakers made hawkish remarks, pushing back on imminent interest rate cuts.

Coming up in the session: ZEW Indicator of Economic Sentiment for Germany and Euro Area, Canada inflation data, U.S. Empire manufacturing survey and pre-market results from Goldman Sachs (GS) and Morgan Stanley (MS).

In the bond market, the U.S. 10-year Treasury yield (US10Y) was up less than 1 basis point to 3.99%.

Germany’s 10-year yield down less than 1 basis point to 2.19%.

U.K.’s 10-year yield was down less than 1 basis point to 3.78%.

Currencies: (EUR:USD) (GBP:USD) (CHF:USD)

ETFs: (EWG), (GF), (EWI), (EWQ), (EWGS), (FGM), (DBGR), (DAX), (FLFR), (FLGR), (FLIY), (FXB), (EWU), (FKU), (EWUS), (FLGB), (GREK)