Europe's STOXX 600 slides in broader market decline on geopolitical jitters
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
ECB policymakers stick with June rate cut plan
Fresenius jumps on Tyenne launch in the US
Topdanmark rises as Q1 beats expectations, ups guidance
Naturgy up after report on takeover talks by Abu Dhabi's TAQA
Updates with closing prices
By Ozan Ergenay, Johann M Cherian and Ankika Biswas
April 16 (Reuters) -Europe's main stock index notched its biggest one-day drop in over nine months on Tuesday, with miners and banks leading losses,as investors steered clear of risky assets owing to heightened tensionsin the Middle East.
The pan-European STOXX 600 .STOXX closed1.6% down, touching its lowest level since March 7, in a broader market decline. Highereuro zone bond yields also pressured equities.
Basic resources .SXPP fell3.1%, its biggest one-day decline since mid-August, ascopper prices retreated onfrail China factory data and a firm U.S. dollar.
Banks .SX7P lost2.6%, their biggest one-day drop since August, dragged by 3% declines in Britain's HSBC HSBA.L and euro zone's largest bank BNP Paribas BNPP.PA.
Among other sectors, automobiles .SXAP, insurance .SXIP and energy .SXEP also lost around 2% each.
Main indexes in Germany .DAX, France .FCHI, Italy .FTMIB and Spain .IBEX shed over 1% each, tracking a global risk-offmood as the world awaited Israel's response to Iran's first-ever direct attack against the country.
"There are upside risks relating to Middle East tensions and these will add to central banks' caution, but we still see the ECB and Bank of England cutting rates from June," Capital Economics chief global economist Jennifer McKeown wrote.
However, European Central Bank policymakers continued to make the case for a June rate cut as inflation remains on course to 2% by next year, even if the price path still proves bumpy.
Earlier in the day, brokerages Morgan Stanley and Deutsche Bank said they expect the ECB to reduce borrowing costs by 75 basis points this year, on uncertainty over the U.S. Federal Reserve's rate cut outlook and sticky domestic inflation.
Investors' confidence of early rate cuts had sparked a rally in the STOXX 600 since late 2023, last seen hitting a record high earlier this month.
Focus is now on quarterly results, with earnings expected to decline 12.1% in the first quarter year-on-year, fresh LSEGdata showed.
Among individual movers, the world's second largest steelmaker ArcelorMittal MT.AS slumped6.9% following aDeutsche Bank rating downgrade to "hold" from "buy".
Barry Callebaut BARN.Sjumped 6.7% afterStifel upgraded the chocolate maker stock to "buy" from "hold".
Fresenius FREG.DE gained 4.6% after the German healthcare firm announced the launch of Tyenne in the U.S. for treating chronic autoimmune diseases.
Danish insurer Topdanmark TOP.COclimbed 4.3% following better-than-expectedfirst-quarter profit and higher profit guidance.
Naturgy NTGY.MC rose3.4% after holding vehicle Criteriaconfirmed talks with a potential investment group regarding the Spanish energy firm.
Reporting by Ozan Ergenay, Johann M Cherian and Ankika Biswas; Editing by Mrigank Dhaniwala, Varun H K and Mark Heinrich
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.
