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Focus on Fed minutes, Nvidia earnings
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AstraZeneca rises on upbeat revenue forecast
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Saipem climbs on winning $3.7 bln contract
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STOXX 600 off 0.2%
May 21 (Reuters) - European stocks closed slightly lower on Tuesday, their third out of four sessions in the red, as caution around interest rate reductions dominated, with investors waiting for economic data due later in the week.
The pan-European STOXX 600 index ended 0.2% lower, after hitting a one-week low earlier in the session, with banks and luxury stocks leading sectoral losses, down around 0.9% each.
The lender-heavy Italian share index lagged regional peers, dropping 0.6% to hit a more than one-week low.
The STOXX index has eased from record highs since European Central Bank policymakers cautioned against expecting successive interest rate reductions in
June and July
.
Traders anticipate cuts worth 66 basis points from the ECB by year-end, according to the LSEG rate probabilities app, with the first seen in June.
Eurozone negotiated wage data for the first quarter along with May manufacturing data expected on Thursday could shed light on the state of the economy and offer clues to the trajectory of interest rates.
"Eurozone productivity is weak, so the bulk of the increase in labour costs over Q1 most likely reflects higher employee compensation. Elevated eurozone wage pressures suggest the easing cycle will be shallow," said Win Thin, global head of markets strategy at Brown Brothers Harriman.
Investors will also focus on minutes from the Fed's last policy meeting and chip giant Nvidia's earnings on Wednesday to see if the recent momentum that pushed U.S. and European equities to record highs continues.
On Tuesday, data showed German producer prices fell more than expected in April, mainly due to lower energy prices.
Drugmaker AstraZeneca rose 2.2%, among top gainers on the UK's main FTSE 100 index, after saying it aimed to increase revenue by about 75% to $80 billion by 2030.
The broader healthcare sector outperformed the main STOXX index with a 0.7% climb.
Italy's top insurer, Generali, dipped 1.5% after reporting first-quarter results, with some analysts pointing to lower-than-expected profitability in the property and casualty business.
The energy contractor
Saipem rose 4% after securing $3.7 billion in contracts with a subsidiary of French oil major TotalEnergies .
Swiss fastening systems maker SFS Group climbed 8%, after UBS upgraded the stock to "Buy" from "Neutral". (Reporting by Sruthi Shankar and Johann M Cherian in Bengaluru; Editing by Rashmi Aich and Kevin Liffey)
