EUROPEAN stocks slipped on Tuesday, as investors navigated geopolitical and global interest-rate cut uncertainties, while German company SAP’s strong outlook boosted tech stocks and helped cushion some losses.
The pan-European Stoxx 600 index closed 0.2 per cent lower, paring early losses that saw the index hit a two-week low.
A spike in yields on benchmark German bunds also pressured equities, with utilities leading sectoral declines.
The Stoxx has hit record highs multiple times this year, but has retreated further from the milestone as investors priced in stagnating economic growth and bleak Chinese demand.
The International Monetary Fund forecast manufacturing powerhouse Germany will see zero growth this year and will weigh on broader euro zone performance.
Key upcoming triggers include the November US elections, doubts over the pace of Federal Reserve rate cuts and the ongoing geopolitical tensions which have boosted the safe-haven US dollar and gold.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Traders see the European Central Bank lowering borrowing costs by about 130 basis points by the end of 2025 as ECB President Christine Lagarde said inflation in the currency union may fall back to 2 per cent quicker than previously thought.
Amid the gloom, SAP’s shares rose 2.1 per cent, lifting the broader tech sector by 0.9 per cent, after the software company increased its full-year targets on strong cloud business in the third quarter.
The stock cushioned some of the German DAX’s losses, given its 15 per cent weightage on the index.
“Although the tone was resolutely bullish about the mid to long term growth opportunity, including from (artificial intelligence), a degree of prudence into year-end makes sense in an uncertain macro backdrop,” analysts at BofA global research said in a note.
Switzerland’s main index slid 0.8 per cent, with Logitech at the bottom with a 6.5 per cent drop. The stock had initially surged 3 per cent after increasing its full-year forecast.
Saab topped the Stoxx index with an 8.9 per cent rise, after the military-hardware producer said its quarterly operating earnings were bigger than expected and confirmed its annual outlook.
Randstad, the world’s largest employment agency and therefore crucial to assess job-market conditions, reported quarterly profit slightly above expectations, sending its shares up 2.3 per cent to touch a 2-1/2-year high.
Norway’s largest bank DNB rose 5.7 per cent after topping its third-quarter profit forecast.
Laboratory testing firm Eurofins fell 11.5 per cent after the company reported nine-month growth below its guidance, hitting the bottom of the Stoxx 600.
Sweden’s Munters dropped 11 per cent after the company posted a third-quarter print below market expectations. REUTERS
Source link : http://www.bing.com/news/apiclick.aspx?ref=FexRss&aid=&tid=67182cf23ffd4fc9b2cc15e65c083007&url=https%3A%2F%2Fwww.businesstimes.com.sg%2Fcompanies-markets%2Fcapital-markets-currencies%2Feurope-shares-sag-sap-boosts-tech-stocks-after-forecast-raise&c=15130996503717846796&mkt=de-de
Author :
Publish date : 2024-10-22 15:17:00
Copyright for syndicated content belongs to the linked Source.
