- German import prices unexpectedly contracts
- German unemployment rises by more than expected in May
- Nvidia's earnings to release after the bell
- Kingfisher down after Q1 results
May 28 (Reuters) - Europe's main stock index was flat on Wednesday as investors monitored progress on trade negotiations with the United States and assessed a slate of economic data from the region.
The continent-wide STOXX 600 index held its ground at 552.84 points, as of 0830 GMT, after two consecutive sessions of gains driven by U.S. President Donald Trump's reversal of tariff threats against the European Union.
Reports said EU policymakers had asked the region's leading companies to swiftly provide details of their U.S. investment plans as they prepare for trade talks with Washington.
Despite signs of a thaw between the U.S. and Europe, investors still remain on their toes as they struggle to keep up with the ever-changing nature of Trump's trade policies.
"There is still a lot of hope that the punishing 50% tariffs will not materialize, and they will likely come in substantially lower," said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.
Germany's main stock index hit a record high and was last up 0.1%, while the mid-caps index also rose to an all-time high.
The record-scaling stock market belied fresh data indicating that German import prices unexpectedly contracted by 0.4% year-on-year in April.
Separate data showed that unemployment in Europe's largest economy grew at a faster-than-expected pace in May, putting pressure on conservative Chancellor Friedrich Merz, who has vowed to pull the economy out of two years of decline.
Additionally, a survey revealed euro zone consumers raised their inflation expectations in April.
Uncertainty from U.S. trade policy shifts and price pressures are leading to higher expectations that the European Central Bank will cut interest rates next week.
In France, the CAC 40 index was up 0.1% after gross domestic product figures showed slight growth in the first quarter, in line with expectations.
Among sectors on STOXX 600, the defence index extended gains by 1.9% as investors continued to flock towards the military ammunition companies amid little hopes of a pause to the ongoing Russia-Ukraine tensions.
Defence electronics maker Hensoldt rose 6% to reach an all-time high, and was the best individual performer for the day.
On the other hand, shares of Kingfisher fell 2.6% as the home improvement retailer's first-quarter results failed to impress investors.
Global markets were focused on upcoming quarterly results from AI chipmaker Nvidia, due after the close of trading on Wall Street.
Reporting by Nikhil Sharma; Editing by Sherry Jacob-Phillips and Varun H K
Source: Reuters