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Business Recorder
3 days ago
- Business
- Business Recorder
European shares tumble as economic, trade uncertainty muddies growth outlook
European shares dropped on Tuesday, weighed down by economically-sensitive bank and mining stocks as investors awaited updates on the trade war clouding global growth. The pan-European STOXX 600 reversed early gains to fall 0.5% by 0830 GMT, extending Monday's losses, as banks dropped 1.4% and miners slumped 2.3%. The Paris-based Organisation for Economic Cooperation (OECD) and Development trimmed its global growth outlook and said the trade war was taking a bigger toll on the U.S. economy than before. 'The OECD forecasts is going to cause a great deal of concern…. a lot of people were thinking maybe inflation is behind us, but big concern now is about what happens next,' said Danni Hewson, head of financial analysis at AJ Bell. The news comes ahead of a flash estimate of euro zone inflation numbers and the European Central Bank's monetary policy meeting this week. Anxiety over how U.S. President Donald Trump's tariffs would be implemented after they ran into legal hurdles last week still prevailed after the administration asked an appeals court to pause a second court ruling. European shares pressured by Trump's new tariff threats However, the administration pushed countries for their best trade offers by Wednesday and said that Trump and his Chinese counterpart will likely speak this week amid escalating trade tensions, a sign that trade negotiations were on the horizon. 'Markets feel like they're on the Trump tariff roller coaster at the moment…. The biggest problem is that it always feels like it's one step forward, 2 steps back,' said Hewson. Defensive stocks were in a bright spot with utilities and telecom advancing. Meanwhile, Dutch far right leader Geert Wilders said his PVV party would leave the governing coalition, toppling the rightwing government and likely leading to new elections. Stocks in Netherlands were down 0.6%, largely in-line with declines in regional bourses. Among individual names, British water utility Pennon Group fell 2.1% after it swung to an annual pretax loss. UBS gained 2% after Jefferies upgraded the bank's stock to 'buy' from 'hold'. Julius Baer slipped 1.9%. The Swiss bank announced further cost-saving measures amounting to 130 million Swiss franc ($159.02 million) by 2028. Real estate investment trust Cofinimmo gained 2.9% after announcing a merger with healthcare real estate firm Aedifica.
Business Recorder
22-05-2025
- Business
- Business Recorder
European stocks ease from 2-month highs
FRANKFURT: European stocks were little changed on Wednesday as gains in broader stocks outweighed declines in luxury and retail stocks, while investors monitored a tax cut bill in the United States. The pan-European STOXX 600 closed slightly lower, with retail stocks weighing heavily on the market, down 0.8%. London's JD Sports fell 10.6% to the bottom of the STOXX 600 after posting a 2% drop in first-quarter underlying sales and warned that higher prices in its key US market could hit customer demand. LVMH, Hermes and Kering among others fell over 2% after luxury group Chanel reported a 4.3% drop in its comparable yearly sales. On the flip side, tech shares were the biggest gainers. German chipmaker Infineon's 2.3% gain after it said it would work with Nvidia to develop chips for new power delivery systems inside artificial intelligence data centers provided a boost to the sector. Meanwhile, worries about the lack of progress on trade deals as the clock ticks down to the end of US President Donald Trump's 90-day tariff respite, as well as a sweeping US tax bill, raised concerns about the country's fiscal health. 'You have some big questions like whether or not Donald Trump is going to be able to push this through huge uncertainty about what's going on with tariffs and where the money to pay for these tax cuts is actually going to come from,' said Danni Hewson, head of financial analysis at AJ Bell. 'If the US economic health is less than sprightly, then investors in Europe will be very concerned.' The STOXX 600, however, has recovered from its April slump, and is trading less than 3% away from its all-time highs. An index tracking defence stocks was up 0.5% after Trump selected a design for the $175 billion Golden Dome missile defence shield on Tuesday. Meanwhile, data showed British inflation surged by more than expected in April, including in key areas closely watched by the Bank of England, complicating its path towards gradual interest rate cuts. Morgan Stanley raised its view on the European banking sector to 'attractive', citing better earnings potential from continued yield steepening.
Business Times
21-05-2025
- Business
- Business Times
Europe: Stocks ease from two-month highs as retailers, luxury stocks weigh
EUROPEAN stocks were little changed on Wednesday as gains in broader stocks outweighed declines in luxury and retail stocks, while investors monitored a tax cut bill in the United States. The pan-European Stoxx 600 closed slightly lower at 553.82, with retail stocks weighing heavily on the market. London's JD Sports fell 10.6 per cent to the bottom of the Stoxx 600 after posting a 2 per cent drop in first-quarter underlying sales and warned that higher prices in its key US market could hit customer demand. LVMH, Hermes and Kering among others fell over 2 per cent after luxury group Chanel reported a 4.3 per cent drop in its comparable yearly sales. On the flip side, tech shares were the biggest gainers. German chipmaker Infineon's 2.3 per cent gain after it said it would work with Nvidia to develop chips for new power delivery systems inside artificial intelligence data centres provided a boost to the sector. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Meanwhile, worries about the lack of progress on trade deals as the clock ticks down to the end of US President Donald Trump's 90-day tariff respite, as well as a sweeping US tax bill, raised concerns about the country's fiscal health. 'You have some big questions like whether or not Donald Trump is going to be able to push this through huge uncertainty about what's going on with tariffs and where the money to pay for these tax cuts is actually going to come from,' said Danni Hewson, head of financial analysis at AJ Bell. 'If the US economic health is less than sprightly, then investors in Europe will be very concerned.' The Stoxx 600, however, has recovered from its April slump, and is trading less than 3 per cent away from its all-time highs. An index tracking defence stocks was up 0.5 per cent after Trump selected a design for the US$175 billion Golden Dome missile defence shield on Tuesday. Meanwhile, data showed British inflation surged by more than expected in April, including in key areas closely watched by the Bank of England, complicating its path towards gradual interest rate cuts. Morgan Stanley raised its view on the European banking sector to 'attractive', citing better earnings potential from continued yield steepening. The European banks index is among the top performing sectors this year. Swiss bank Julius Baer slid 4.9 per cnet after reporting a 130 million Swiss franc (S$201.6 million) charge from a credit portfolio review and replacing its chief risk officer. REUTERS
Fashion Network
21-05-2025
- Business
- Fashion Network
European stocks ease from 2-month highs as retailers, luxury stocks weigh
European stocks were little changed on Wednesday as gains in broader stocks outweighed declines in luxury and retail stocks, while investors monitored a tax cut bill in the United States. See catwalk The pan-European STOXX 600 closed slightly lower, with retail stocks weighing heavily on the market, down 0.8%. London's JD Sports fell 10.6% to the bottom of the STOXX 600 after posting a 2% drop in first-quarter underlying sales and warned that higher prices in its key U.S. market could hit customer demand. LVMH, Hermes and Kering among others fell over 2% after luxury group Chanel reported a 4.3% drop in its comparable yearly sales. On the flip side, tech shares were the biggest gainers. German chipmaker Infineon's 2.3% gain after it said it would work with Nvidia to develop chips for new power delivery systems inside artificial intelligence data centers provided a boost to the sector. Meanwhile, worries about the lack of progress on trade deals as the clock ticks down to the end of U.S. President Donald Trump 's 90-day tariff respite, as well as a sweeping U.S. tax bill, raised concerns about the country's fiscal health. "You have some big questions like whether or not Donald Trump is going to be able to push this through huge uncertainty about what's going on with tariffs and where the money to pay for these tax cuts is actually going to come from," said Danni Hewson, head of financial analysis at AJ Bell. "If the US economic health is less than sprightly, then investors in Europe will be very concerned." The STOXX 600, however, has recovered from its April slump, and is trading less than 3% away from its all-time highs. An index tracking defence stocks was up 0.5% after Trump selected a design for the $175 billion Golden Dome missile defence shield on Tuesday. Meanwhile, data showed British inflation surged by more than expected in April, including in key areas closely watched by the Bank of England, complicating its path towards gradual interest rate cuts. Morgan Stanley raised its view on the European banking sector to "attractive", citing better earnings potential from continued yield steepening. The European banks index is among the top performing sectors this year. Swiss bank Julius Baer slid 4.9% after reporting a 130 million Swiss franc ($156.4 million) charge from a credit portfolio review and replacing its chief risk officer.
Fashion Network
21-05-2025
- Business
- Fashion Network
European stocks ease from 2-month highs as retailers, luxury stocks weigh
European stocks were little changed on Wednesday as gains in broader stocks outweighed declines in luxury and retail stocks, while investors monitored a tax cut bill in the United States. See catwalk The pan-European STOXX 600 closed slightly lower, with retail stocks weighing heavily on the market, down 0.8%. London's JD Sports fell 10.6% to the bottom of the STOXX 600 after posting a 2% drop in first-quarter underlying sales and warned that higher prices in its key U.S. market could hit customer demand. LVMH, Hermes and Kering among others fell over 2% after luxury group Chanel reported a 4.3% drop in its comparable yearly sales. On the flip side, tech shares were the biggest gainers. German chipmaker Infineon's 2.3% gain after it said it would work with Nvidia to develop chips for new power delivery systems inside artificial intelligence data centers provided a boost to the sector. Meanwhile, worries about the lack of progress on trade deals as the clock ticks down to the end of U.S. President Donald Trump 's 90-day tariff respite, as well as a sweeping U.S. tax bill, raised concerns about the country's fiscal health. "You have some big questions like whether or not Donald Trump is going to be able to push this through huge uncertainty about what's going on with tariffs and where the money to pay for these tax cuts is actually going to come from," said Danni Hewson, head of financial analysis at AJ Bell. "If the US economic health is less than sprightly, then investors in Europe will be very concerned." The STOXX 600, however, has recovered from its April slump, and is trading less than 3% away from its all-time highs. An index tracking defence stocks was up 0.5% after Trump selected a design for the $175 billion Golden Dome missile defence shield on Tuesday. Meanwhile, data showed British inflation surged by more than expected in April, including in key areas closely watched by the Bank of England, complicating its path towards gradual interest rate cuts. Morgan Stanley raised its view on the European banking sector to "attractive", citing better earnings potential from continued yield steepening. The European banks index is among the top performing sectors this year. Swiss bank Julius Baer slid 4.9% after reporting a 130 million Swiss franc ($156.4 million) charge from a credit portfolio review and replacing its chief risk officer.
