Lindt Spruengli jump on beating 2023 sales estimates
Hugo Boss drops on Q4 EBIT miss
STOXX down 0.4

Jan 16 Reuters European shares opened lower on Tuesday as investors reined in expectations of interest rate cuts following recent comments from European Central Bank officials, while shares of Lindt Spruengli jumped on upbeat results.

The panEuropean STOXX 600 moved 0.4 lower by 0920 GMT, hitting its lowest intraday level in over a month.

French central bank Governor Francois Villeroy de Galhau said in Davos the ECB cannot yet declare victory over inflation but its next move is likely to be an interest rate cut sometime this year, adding to the slew of comments from policymakers recently to push back rate cut expectations.

It comes back to the very optimistic end that we had last year, that we would see a cooling inflation, a soft landing and a pivot to interest rate cuts, said Russ Mould, investment director at AJ Bell.

If so, that39;s fine. But if we get anything that does not fit with that comfortable scenario, either stickier inflation or a harder landing, then it does seem logical to expect equity volatility going forward.

Traders now see a near25 chance of the first rate cut in March, down from more than 30 in the previous week. OECBWATCH

Eurozone consumers have slashed their inflation expectations, however, according to an ECB survey, in comforting news for the ECB39;s efforts to contain prices.

While market participants remain focussed on ascertaining…