FTSE 100 down 0.65%; DAX down 0.93%; CAC 40 down 0.92% (Il Sole 24 Ore Radiocor) - Milan, 02 Jul - European shares opened lower, retreating from yesterday's gains, with the Stoxx 600 index down 0.60%.

Investors remained on the sidelines as they awaited the latest regional inflation data for fresh clues on the timing of future European Central Bank interest rate cuts.

Analysts expect a slight slowdown in the eurozone's headline and underlying measures after an uptick in May.

The ECB started slashing interest rates in June but made no commitment about further moves as inflation remains sticky.

Investors also aweaited a speech by Federal Reserve chair Jerome Powell at a European Central Bank event today.

The minutes of the Fed's June meeting are due tomorrow, while key US labor market data is also on tap this week with nonfarm payrolls due on Friday.

The region's stock markets rose in the previous session as investors dismissed recent concerns over political uncertainty in France following this weekend's elections.

Marine Le Pen's far-right National Rally (Rassemblement National) party scored historic gains in the first round of parliamentary election, but by a smaller margin than what some polls had suggested.

According to updated figures released today by France's Interior Ministry, the Rassemblement National and allies won 33% of the vote, followed by there leftist New Popular Front (Nouveau Front Populaire) bloc with 28%, and president Emmanuel Macron's centrists trailing behind in third place with 20%.

The projections suggest that no one party has won an outright majority of at least 289 seats, pointing to a hung parliament.

The focus now shifts to next Sunday's runoff, which will be preceded by intense weeklong negotiations between the parties on how to join forces in each of France's 577 constituencies as the Rassemblement National is seen struggling for an absolute majority.

Both the far-right and the left-wing alliance have pledged big spending increases, sparking concerns over clashes with the EU as the country already struggles with high budget deficit, recently prompting the EU to recommend disciplinary steps.

President Emmanuel Macron called for a snap legislative vote in a political gamble after a crushing defeat for his party in the European Parliament elections.

Investors also looked ahead to Britain's general election - scheduled for Thursday - which looks set to end 14 years in power for the Conservative Party as opinion polls give a large lead to Keir Starmer's opposition Labour Party over prime minister Rishi Sunak's Tories.

At 0745 GMT, the London FTSE 100 was down 0.65% at 8,113 points, the Frankfurt DAX was down 0.93% at 18,152 points, the Paris CAC 40 down 0.92% at 7,491 points, while in Milan the FTSE MIB was down 0.76% at 33,460 points, and in Madrid the IBEX 35 was down 1.47% at 10,894 points.

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(RADIOCOR) 02-07-24 09:58:18 (0212) 5 NNNN