The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, July 17, 2024. REUTERS/Staff Purchase Licensing Rights, opens new tab
- STOXX 600 closes down 0.2%
- ECB keeps rates unchanged at 3.75%
- Volvo Cars rise on Q2 adjusted EBIT beat
- Husqvarna slides on Q2 sales drop
July 18 (Reuters) – European shares ended lower on Thursday as a continued selloff of chip stocks kept a lid on gains brought on by some positive corporate updates, while investors assessed the European Central Bank’s latest verdict to keep lending rates steady.
The continent-wide STOXX 600
closed 0.2% lower, extending losses to a fourth straight session.
The ECB kept interest rates unchanged as expected but said September’s meeting was “wide open” as it downgraded its view of the euro zone’s economic prospects and predicted that inflation would keep on falling.
“What (ECB President) Christine Lagarde is trying to do is she’s trying to buy a bit of time … the labour market still remains quite strong and that is allowing the ECB to take that time,” Aneeka Gupta, director, macroeconomic research at WisdomTree said.
“Instead of giving that firm forward guidance for September, she continues to remain quite data dependent, primarily to allow her to keep all her options open.”
Yields on government bonds across the continent eased, while the euro fell 0.2% against the dollar.
The tech index
extended declines to a fourth session, falling 1.8% with chip stocks like ASML
, ASM International
and BE Semiconductor
amongst the laggards.
Chip stocks around the world came under pressure on Wednesday following a report that the U.S. has told its allies it is considering using the most severe trade restrictions available in its chip crackdown on China.
On the bright side, autos
jumped 1.2% with Volvo Cars
accelerating 11% after the Swedish automotive producer’s second-quarter adjusted EBIT beat expectations.
gained 1.5% after a news report said Facebook-parent Meta
is exploring a stake in the Ray-Ban maker.
Swedish truckmaker AB Volvo
jumped 5.9% after posting a bigger than expected rise in second-quarter operating profit.
added 3% as the French advertising group upgraded its organic growth guidance after beating expectations for the second quarter.
Swedish medical equipment maker Getinge
advanced 10.7% after beating second-quarter earnings forecasts, while Swedish property platform operator Hemnet
added 13.5% after beating estimates on second quarter results.
Husqvarna
slumped 13.2% after the Swedish garden equipment and tools maker said quarterly sales dropped 9% due to cautious consumer spending.
Finnish telecom equipment maker Nokia
shed 5% after reporting a 32% decline in quarterly profit.
ABB
slipped 5.6% as the Swiss engineering group’s second quarter revenue fell short of expectations.
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Reporting by Shristi Achar A, Pranav Kashyap and Shashwat Chauhan in Bengaluru; Editing by Eileen Soreng and Savio D’Souza
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Shristi is a correspondent, part of the markets team reporting on the stock markets across U.S., UK, Canada, Europe and Emerging markets.
