FTSE up 0.17%; DAX down 0.27%; CAC 40 down 0.76% (Il Sole 24 Ore Radiocor) - London, 19 Jun - European shares closed mostly lower, halting a tentative rebound after last week's losses, after the European Commission warned that France, Italy and six other European Union member countries risk a breach of EU rules due excessive budget deficits. Caution also prevailed ahead of a string of central bank meetings and data from central bankers this week for indications on interest rate moves. The Stoxx 600 index was down 0.12% in early trade.

The US markets were closed for the Juneteenth holiday, after Wall Street's key benchmark indexes hit yesterday fresh highs.

Investors awaited the latest interest rate decision from the Bank of England due on Thursday, with the central bank widely expected to hold rates steady at 5.25%. A majority of economists polled by Reuters forecast a cut in August.

Meanwhile, data showed today that UK inflation fell to the Bank of England's target of 2.0% in May. The print is the last key economic measure ahead of national elections in July.

Central banks in Norway and Switzerland are also due to meet this week.

The Norges bank is expected to hold steady on rates, while the Swiss National Bank is seen slashing rates by another 25 basis points.

Data showed yesterday that eurozone annual inflation figures from EU statistical office Eurostat matched preliminary data, confirming that the annual inflation rate in the bloc rose to 2.6% in May from 2.4% in April.

The region's stock markets sank last week on political uncertainty after the latest European Union elections showed a broader shift towards right-wing and far-right parties.

France's CAC 40 index fell more than 6.2% last week, marking its worst weekly drop since March 2022 after French president Emmanuel Macron called for snap legislative elections later in June as his party lagged Marine Le Pen's far-right party in the EU vote.

Opinion polls now suggest that France's far-right National Rally party will win the upcoming French election ahead of a left-wing alliance. Macron's centrist group is seen trailing in third in the upcoming election.

The London FTSE 100 closed up 0.17% at 8,205.11 points, the Frankfurt DAX lost 0.27% at 18,075.35 points, the Paris CAC 40 shed 0.76% at 7,628.80 points, while in Milan the FTSE MIB fell 0.29% at 33,220.31 points, and in Madrid the IBEX 35 closed 0.27% lower at 11,037.51 points.

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(RADIOCOR) 19-06-24 18:10:29 (0608) 5 NNNN