November 5, 2024

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Technology drives European stocks into the red, and doubts about interest rate cuts loom

Technology drives European stocks into the red, and doubts about interest rate cuts loom

European stocks opened weak on Friday, led by declines in technology and real estate stocks, as investors awaited inflation data in the euro zone to clarify the path of interest rate cuts after June.

By 0715 GMT, the European STOXX 600 index fell 0.2 percent, but was heading towards achieving a second consecutive weekly rise thanks to a strong corporate earnings season.

All eyes will be on the euro zone's final inflation figures later today after a report showed ECB Governing Council member Isabel Schnabel advising caution about further interest rate cuts after a potential first rate cut in June.

The technology and real estate sectors, which are sensitive to interest rates, were the hardest hit, with each falling by 0.7%.

Luxury goods group Richemont rose 6 percent after quarterly results, leading the sector's gains.

H&M stock rose 2.5% after RBC upgraded the fashion retailer to “outperform” from “sector perform.”

Shares of French reinsurer SCORE fell 8.0% after the first quarter results.

Nippi shares fell 4.6% after Citigroup downgraded the Swedish heat pump maker to neutral from buy, while German utility company E.ON fell 4.1% in ex-dividend trading.

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