🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

European shares fall after three days of gains; HelloFresh tumbles

Published 2023/11/16, 12:30
Updated 2023/11/16, 19:17
© Reuters. A TV presenter gets ready for the daily reporting from the floor of the German share price index DAX at the stock exchange in Frankfurt, Germany, November 15, 2023.    REUTERS/Staff
STOXX
-
HFGG
-

By Ankika Biswas and Bansari Mayur Kamdar

(Reuters) -Europe's benchmark index fell on Thursday, dragged down by energy stocks, following a three-day run of gains on hopes for a peak in interest rate policy tightening and eventual rate cuts.

The pan-European STOXX 600 closed 0.7% lower after gaining 2.5% over the past three days and hitting a more than one-month high on Wednesday.

During the week, inflation data out of the United States and Britain reinforced hopes that their central banks were done raising rates. Investors are shifting focus to the euro zone's inflation reading on Friday.

"A bit of profit-taking is going on following the wave of euphoria after lower-than-expected inflation led to quite a lot of optimism that perhaps rate cuts would come sooner rather than later," said Susannah Streeter, head of money and markets at Hargreaves Lansdown (LON:HRGV).

"Also, clouds have been gathering over the euro zone economy for some time with Germany in particular facing a slowdown."

Energy stocks led sectoral declines with a 2.7% fall, tracking weakness in crude oil prices on signals of higher supply in the United States and expectations of weak energy demand in China.

Also dampening the mood was fresh data pointing to persistent problems in China's housing sector that could disrupt the top metal consumer's overall recovery.

The luxury goods sector eased 1.5%.

Prominent names, including Kering (EPA:PRTP), LVMH (EPA:LVMH) and Richemont (JO:CFRJ) shed between 1.8% and 2.7% each. This followed Burberry's 11.1% drop after the British luxury fashion brand said it was grappling with a slowdown in global spending on luxury and would struggle to meet its annual revenue forecast.

HelloFresh (OTC:HLFFF) slumped 22.4% to the bottom of the STOXX 600 after the German meal-kit maker cut its annual core profit outlook and narrowed revenue growth guidance.

German chemicals maker BASF lost 2.5% following a Jefferies rating downgrade.

On the upside, Embracer rose 3.2% after the Swedish games developer posted a bigger-than-expected second-quarter operating profit.

© Reuters. A TV presenter gets ready for the daily reporting from the floor of the German share price index DAX at the stock exchange in Frankfurt, Germany, November 15, 2023.    REUTERS/Staff

Siemens gained 5.7% after the trains-to-industrial software maker posted better-than-estimated fourth-quarter industrial profit, helping Germany's DAX rise 0.2%.

Spain's parliament voted to make Pedro Sanchez prime minister for another term, ending a protracted deadlock after an inconclusive general election in July. Spain's IBEX gained 0.3%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.