European shares fall as Airbus leads aerospace sell-off
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Airbus tumbles on profit warning
Industrials lead sell-off
Novo Nordisk hits record high after Wegovy gets China approval
STOXX 600 down 0.2%
Updated at 1600 GMT
By Jesus Calero, Shashwat Chauhan and Shristi Achar A
June 25 (Reuters) -European shares declined on Tuesday as Airbus tumbled after a profit warning and sparked an aerospace-related sell-off, while investors focused on French parliamentary elections later in the week.
The continent-wide STOXX 600 .STOXX ended 0.2% lower.
Airbus AIR.PA tumbled 9.4% and was among the biggest drags on the index, after Europe's largest aerospace group cut its industrial and financial targets and took a hefty 900 million euro ($965 million) charge for its space activities.
Itsprofit warning and forecast for fewer plane deliveries dragged jet-engine manufacturers Rolls-Royce RR.L and MTU Aero Engines MTXGn.DE lower.
The wider STOXX Europe aerospace and defence index .SXPARO slid 3.8% to its lowest in over three months.
The tech sub-index .SX8P, which houses some of Europe's biggest chip-related firms, rebounded from near three-week lows earlier in the session to close 0.2% higher.
Chipmakers are among the best-performing sectors in Europe, with the index jumping 15% so far this year.
"We're seeing a pretty healthy broadening of a longer-term equity rally." said Tom Gehlen, senior market strategist at SG Kleinwort Hambros. "Tech stocks had an amazing run and it's nothing but healthy that they're taking a bit of a pause giving opportunity to investors to catch their breath and reposition."
The market remains focusedon the first round of French parliamentary elections and a key U.S. inflation report due later this week.
Paris stock market operator Euronext's CEO said the prospect of a politically extreme party with little or no government experience reaching power is worrying investors.
"(Polls) suggest that the centre will be depopulated as voters swing to the extremes on the left and right," economists at Pantheon Macroeconomics noted.
"We think the main outcome of such a result is political stalemate rather than crisis, but the stakes are high for France and Europe alike."
France's benchmark CAC 40 .FCHI slipped 0.6% amidst the broader sell-off.
Among other stocks, Germany's Merck MRCG.DE shed 5.7% after the drugmaker said it had stopped trials for xevinapant in advanced head and neck cancer.
French lab testing firm Eurofins EUFI.PA gained 4% after falling as much as 25% on Monday when short seller Muddy Waters took a short position in the company.
Novo Nordisk's shares NOVOb.CO advanced 4% to a record high after the Danish pharmaceutical giant said its weight-loss drug Wegovy had been approved in China.
Reporting by Shashwat Chauhan and Shristi Achar A in Bengaluru and Jesus Calero in Gdansk; Editing by Rashmi Aich, Savio D'Souza and Richard Chang
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
