European stocks’ close was choppy but steadied; Ericsson fell by more than 12%

U.S. June inflation rose 3.5%, with the pace slowing faster than expected, easing pressure on the Federal Reserve to raise interest rates. U.S. stocks generally steadied on Tuesday, with technology and bank shares gaining.

European markets initially fell before stabilizing. The pan-European index Stoxx 600 rebounded 0.17% to close at 642 points; it had dipped as much as 0.86% at one point.

Swedish telecom equipment maker Ericsson’s share price plunged 12.6%. The group said second-quarter core network business sales fell 4%, due to weaker sales in North America and Europe and lower licensing revenue, offsetting growth in most other regions.

The UK’s FTSE 100 index closed at 10,529 points, up 0.3% or 31 points. Germany’s DAX index closed at 25,147 points, rising 0.13% or 32 points. France’s CAC 40 closed at 8,366 points, edging up 0.03% or 2 points. Italy’s FTSE MIB closed at 52,862 points, up 0.1% or 53 points. Spain’s IBEX 35 closed at 19,356 points, gaining 0.11% or 20 points.

U.S. June consumer price index (CPI) fell 0.4% month-on-month, the first decline since 2020, against an expected drop of 0.1%. On a year-on-year basis, it rose 3.5%, versus an expected increase of 3.8%.

Federal Reserve Chair Waller testified before the House Financial Services Committee, saying the authorities have “zero tolerance” for persistent high inflation and reaffirming their commitment to restore price stability, adding that if the right policies are adopted, the spike in inflation over the past five years would become history.

Bank of England Governor Bailey said the UK banking system is resilient, but he expressed concern about the impact on financial stability from the recent resumption of hostilities between the United States and Iran.