European Shares Mixed as Inflation Cools to 2.8% and Investors Await Lagarde-Warsh Panel

European shares traded mixed on Wednesday, July 1, 2026, after fresh inflation data. The STOXX 600 slipped 0.2% in early trade, pulling back from Tuesday’s record high. Eurozone inflation cooled sharply to 2.8% in June, beating forecasts of 3.0%. Investors now await a closely watched panel featuring ECB President Christine Lagarde and Fed Chair Kevin Warsh at the Sintra forum.

European Shares Slip After Inflation Data

European shares opened lower today despite the encouraging inflation print. The STOXX 600 fell 0.2%, giving back part of Tuesday’s 0.9% gain.

Regional indices showed a split picture across the continent. Germany’s DAX rose 0.2%, while France’s CAC 40 slipped 0.3%.

• FTSE 100: down 0.2%
• IBEX 35: down 0.3%
• FTSE MIB: down 0.3%

That mixed trading reflects investor caution ahead of central bank commentary later today.

From today, customs duties apply to e-commerce parcels worth up to €150 entering the EU.

30 million Europeans work in retail; it's our our largest private-sector employer.

And the surge in low-value online imports has put our retailers at an unfair disadvantage.

Too many of…

— Ursula von der Leyen (@vonderleyen) July 1, 2026

Eurozone Inflation Cools to 2.8% in June

Eurozone inflation dropped to 2.8% in June, down from 3.2% in May. That marked the first monthly price decline this year, falling 0.1%.

Core inflation, which excludes energy and food, eased to 2.4% from 2.6%. Energy inflation cooled to 8.7%, sharply lower than May’s 10.8% reading.

Country-Level Breakdown

• Germany: eased to 2.3%, down from 2.9% in April
• France: fell to 1.8%, its lowest level in over a year
• Malta: lowest in the bloc at 1.9%
• Lithuania: highest at 5.5%

Every major eurozone economy reported cooler inflation, easing pressure on the European Central Bank.

Lagarde-Warsh Panel in Focus

Lagarde told the ECB Forum in Sintra on Monday that Europe still faces inflation risks ahead. She added the region’s resilience gives the ECB room to act without instability.

Fed Chair Warsh joins Lagarde on today’s panel, with traders watching for policy signals. European shares could react quickly to any hawkish or dovish surprises from the discussion.

European Shares’ Quarterly Performance

Heading into July, the region’s stock markets posted their strongest quarterly performance since October 2020. The STOXX 600 gained 9% in the second quarter, while the STOXX 50 rose 12%.

That rally came as oil prices retreated toward pre-war levels. Easing geopolitical tensions in the Middle East improved investor confidence throughout June, helping lift sentiment across major European stock markets and supporting gains in several key regional indices.

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