FTSE 100 down 0.18%; DAX down 0.61%; CAC 40 down 0.90% (Il Sole 24 Ore Radiocor) - Milan, 09 Jul - European shares were mostly lower in cautious midday trade after yesterday's mixed session, with the Stoxx 600 index down 0.41%.

The markets awaited two-day testimony by Federal Reserve chair Jerome Powell beginning later in the day and the US consumer price index reading due on Thursday to assess the Fed's interest rate path, amid growing bets on lower US interest rates.

Powell last week fanned hopes of a rate cut, saying the battle against inflation had made progress and the job market was cooling.

Wall Street's S&P 500 and the Nasdaq Composite closed yesterday at record highs.

Caution prevailed in the region amid prospects of a hung parliament in France after a surprise win for the country's leftwing coalition, the New Popular Front (Nouveau Front Populaire).

The bloc won the second round of the general election held on Sunday, thwarting an expected surge of the far-right, but failed to secure an absolute majority.

Marine Le Pen's far-right National Rally (Rassemblement National) underwhelmed after scoring historic gains in the first round of the parliamentary election on June 30.

The New Popular Front has 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.

The French election results come after a general election in the UK last week that saw the opposition Labour Party win a landslide victory as expected, ending 14 years in power for the Conservative Party.

At 1125 GMT, the London FTSE 100 was down 0.18% at 8,178 points, the Frankfurt DAX was down 0.61% at 18,378 points, the Paris CAC 40 down 0.90% at 7,559 points, while in Milan the FTSE MIB was down 0.06% at 30,027 points, and in Madrid the IBEX 35 was down 0.71% at 10,944 points.

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(RADIOCOR) 09-07-24 13:40:52 (0346) 5 NNNN