FTSE 100 down 0.22%; DAX down 0.39%; CAC 40 down 0.36% (Il Sole 24 Ore Radiocor) - Milan , 07 Jun - European shares opened marginally lower, retreating from yesterday's gains. The Stoxx 600 index was down 0.09% in early trade after climbing to record highs in the previous session.

Yesterday the European Central Bank cut rates by 25 basis points for the first time since 2019 as widely expected by the markets. The ECB also released new forecasts in which it now sees headline inflation averaging 2.5% in 2024, 2.2% in 2025 and 1.9% in 2026. For inflation excluding energy and food, the ECB projects an average of 2.8% in 2024, 2.2% in 2025 and 2.0% in 2026. While economic growth is expected to pick up to 0.9% in 2024, 1.4% in 2025 and 1.6% in 2026.

Despite the rise in inflation forecasts, investors still believe the ECB is likely to cut interest rates in September.

Speaking after the rate cut, ECB president Christine Lagarde emphasized that the bank is now more confident that inflation is falling toward 2% in the medium term.

Investors now awaited US nonfarm payrolls data due later today for more cues on the Federal Reserve's interest rate path, after weak US labor market data released this week ramped up hopes that the Fed will cut interest rates by September. The report came a day after the Labor Department said job openings had fallen in April to the fewest in more than three years.

Meanwhile, back in Europe EU-wide elections got underway, with around 400 million people due to vote for members of the European Parliament over the next few days.

The last polls will close on Sunday and provisional results are due later that evening.

In European stock market dealings most sectors were mixed, with technology shares edging higher while miners slipped.

At 0735 GMT the London FTSE 100 was down 0.22% at 8,266 points, the Frankfurt DAX was down 0.39% at 18,573 points, the Paris CAC 40 fell 0.36% at 8,011 points, while in Milan the FTSE MIB dropped 0.17% at 34,774 points, and in Madrid the IBEX 35 was down 0.05% at 11,438 points.

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(RADIOCOR) 07-06-24 09:55:28 (0201) 5 NNNN