Saturday, July 19, 2025
  • Login
Forbes 40under40
  • Home
  • Technology
  • Innovation
  • Real Estate
  • Leadership
  • Money
  • Lifestyle
No Result
View All Result
  • Home
  • Technology
  • Innovation
  • Real Estate
  • Leadership
  • Money
  • Lifestyle
No Result
View All Result
Forbes 40under40
No Result
View All Result
Home Real Estate

Europe: Banks weigh down Stoxx 600 after ECB signals rate cuts

by Riah Marton
in Real Estate
Europe: Banks weigh down Stoxx 600 after ECB signals rate cuts
Share on FacebookShare on Twitter


EUROPE’S benchmark stock index fell to a one-month low on Thursday, as banks took a hit after the European Central Bank held rates steady but signalled imminent cuts, while Deutsche Telekom dropped to a five-month low on trading ex-dividend.

The ECB maintained interest rates at record high as expected, but signalled it may soon start to cut them, even as investors question whether stubborn US inflation will stop the Federal Reserve from following close behind.

The pan-European Stoxx 600 closed 0.4 per cent lower in volatile trade, with the banking sector taking the biggest hit, falling 2.4 per cent and notching its steepest one-day drop in over eight months.

The indexes of top economies in the currency union such as Germany, France, Italy and Spain were also down between 0.3 per cent to 1.2 per cent.

“The ECB’s decision to update its guidance suggests that an interest rate cut at the next meeting in June is very likely,” Jack Allen-Reynolds, deputy chief euro zone economist at Capital Economics wrote.

“We expect the Bank to reduce the deposit rate from 4 per cent currently to 3 per cent by the end of the year.”

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

The telecoms sector also shed 2.1 per cent, dragged down by a 6.2 per cent drop in Deutsche Telekom as the company traded ex-dividend.

Also denting equities were higher euro zone bond yields as expectations for a higher-for-longer scenario for US interest rates more than offset the ECB remarks.

Investors also parsed a cooler-than-expected March producer inflation data in the United States.

After a lacklustre week, the Stoxx 600 had hit a one-month low on Wednesday after a hot US inflation report sparked concerns on the timeline for the Federal Reserve’s first rate cut, while raising expectations that the ECB could lower rates before its US counterpart.

Among other sectors, utilities and healthcare were among the rare bright spots, up 0.5 per cent each.

As for individual stocks, Ambu climbed 4.6 per cent after the Danish maker of single-use endoscopy solutions hiked its full-year outlook and posted preliminary second-quarter financials.

Lufthansa dropped 2.7 per cent after the German carrier extended a suspension of its flights to Tehran, with the Middle East on alert for Iranian retaliation for a suspected Israeli airstrike on the country’s embassy in Syria.

Idorsia postponed its 2023 and first-quarter results publication, sending the Swiss biotech firm’s shares down 26.4 per cent.

AstraZeneca rose 2.1 per cent after the drugmaker said it planned to increase its annual dividend by 7 per cent for 2024. REUTERS

Tags: BanksCutsECBEuropeEurope stocksRateSignalsStoxxWeigh
Riah Marton

Riah Marton

I'm Riah Marton, a dynamic journalist for Forbes40under40. I specialize in profiling emerging leaders and innovators, bringing their stories to life with compelling storytelling and keen analysis. I am dedicated to spotlighting tomorrow's influential figures.

Next Post
Oil settles lower as rate cut hopes moderate, Brent holds near US/barrel

Oil settles lower as rate cut hopes moderate, Brent holds near US$90/barrel

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Forbes 40under40 stands as a distinguished platform revered for its commitment to honoring and applauding the remarkable achievements of exceptional individuals who have yet to reach the age of 40. This esteemed initiative serves as a beacon of inspiration, spotlighting trailblazers across various industries and domains, showcasing their innovation, leadership, and impact on a global scale.

 
 
 
 

NEWS

  • Forbes Magazine
  • Technology
  • Innovation
  • Money
  • Leadership
  • Real Estate
  • Lifestyle
Instagram Facebook Youtube

© 2024 Forbes 40under40. All Rights Reserved.

  • About Us
  • Advertise
  • Contact Us
No Result
View All Result
  • Home
  • Technology
  • Innovation
  • Real Estate
  • Leadership
  • Money
  • Lifestyle

© 2024 Forbes 40under40. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In