European shares slide more than 1% as bank stocks crumble
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
UK's Rolls-Royce surges on raising profit forecast
France's Worldline drops after cutting 2024 outlook
Bank of England cuts rates from 16-year high
European banks index has worst day since March 2023
STOXX 600 down 1.2%
Updated at 1600 GMT
By Pranav Kashyap and Shashwat Chauhan
Aug 1 (Reuters) -Europe's STOXX 600 closed more than 1% lower on Thursday, with banks leading the sell-off after Societe Generale cut a key target for its French retail division and the Bank of England lowered interest rates.
The pan-European STOXX 600 index .STOXX finished down 1.2% after touching a two-week high in the previous session.
The banking sector .SX7P dropped 4.5%, its biggest single-day decline since March 2023, when the sector was rocked by the collapse of Credit Suisse and concerns over the stability of U.S. regional banks.
Societe Generale SOGN.PA tumbled almost 9% after the lender cut its guidance for its French retail net interest income, overshadowing a quarterly earnings beat.
Italy's banks-heavy benchmark index .FTMIB dropped 2.7%, while the Spanish benchmark .IBEX shed 1.9%.
Monetary policy was in focus as the Bank of England cut interest rates from a 16-year high after a tight vote by its policymakers, who were split over whether inflationary pressures had eased sufficiently.
"The move comes despite some recent evidence of stickiness in services inflation and wages. That was reflected in the statement with (BoE Governor Andrew) Bailey providing no guidance on when we can expect further easing," said Matthew Landon, global market strategist at J.P. Morgan Private Bank.
"This is similar to the hawkish cut that we got from European Central Bank back in June."
Britain's blue-chip FTSE 100 .FTSE closed 1% lower, shrugging off initial gains, with HSBC HSBA.L sliding 6.5%.
Lower rates could weigh on interest margins, a key source of income for lenders.
Federal Reserve Chair Jerome Powell said on Wednesday interest rates could be cut as soon as September if the U.S. economy follows its expected path.
Germany's benchmark index .GDAXI slipped 2.3%, with BMW BMWG.DE dropping 3.1% after the automaker reported a lower than expected profit margin in its core automotive business during the second quarter.
On the economic data front, euro zone manufacturing activity remained mired in contraction in July. The Purchasing Managers' Index (PMI) held at June's 45.8 in July. Germany's manufacturing sector continued its downturn, falling to 43.2 in July from 43.5 in June.
Among other notable stock moves, Rolls-Royce RR.L surged 7% after the British aero engine maker said it would pay a dividend for the first time since the pandemic and raised its 2024 profit and cash flow forecasts.
Worldline WLN.PA tumbled 15.3%, hitting an all-time low after the French payment technology group cut its 2024 outlook, citing a sharp decline in consumption trends across Europe and uncertainty about a potential recovery.
Reporting by Pranav Kashyap and Shashwat Chauhan in Bengaluru; Editing by Nivedita Bhattacharjee and Mark Potter
Ativos relacionados
Últimas notícias
Isenção de Responsabilidade: As entidades do XM Group proporcionam serviço de apenas-execução e acesso à nossa plataforma online de negociação, permitindo a visualização e/ou uso do conteúdo disponível no website ou através deste, o que não se destina a alterar ou a expandir o supracitado. Tal acesso e uso estão sempre sujeitos a: (i) Termos e Condições; (ii) Avisos de Risco; e (iii) Termos de Responsabilidade. Este, é desta forma, fornecido como informação generalizada. Particularmente, por favor esteja ciente que os conteúdos da nossa plataforma online de negociação não constituem solicitação ou oferta para iniciar qualquer transação nos mercados financeiros. Negociar em qualquer mercado financeiro envolve um nível de risco significativo de perda do capital.
Todo o material publicado na nossa plataforma de negociação online tem apenas objetivos educacionais/informativos e não contém — e não deve ser considerado conter — conselhos e recomendações financeiras, de negociação ou fiscalidade de investimentos, registo de preços de negociação, oferta e solicitação de transação em qualquer instrumento financeiro ou promoção financeira não solicitada direcionadas a si.
Qual conteúdo obtido por uma terceira parte, assim como o conteúdo preparado pela XM, tais como, opiniões, pesquisa, análises, preços, outra informação ou links para websites de terceiras partes contidos neste website são prestados "no estado em que se encontram", como um comentário de mercado generalizado e não constitui conselho de investimento. Na medida em que qualquer conteúdo é construído como pesquisa de investimento, deve considerar e aceitar que este não tem como objetivo e nem foi preparado de acordo com os requisitos legais concebidos para promover a independência da pesquisa de investimento, desta forma, deve ser considerado material de marketing sob as leis e regulações relevantes. Por favor, certifique-se que leu e compreendeu a nossa Notificação sobre Pesquisa de Investimento não-independente e o Aviso de Risco, relativos à informação supracitada, os quais podem ser acedidos aqui.
