Europe Stocks Fall on Fed Rates Worries; UK Shares Underperform
European stocks fell as investors worried about the outlook for the Federal Reserve’s interest rates and weak data in China. Domestically-exposed UK equities underperformed on reports of a tax-hike U-turn by Chancellor Rachel Reeves.
The Stoxx Europe 600 Index was down 0.9% as of 8:20 a.m. in London. Mining and tech shares were among the biggest laggards, while the energy sector outperformed. Among individual stocks, Siemens Energy AG rose 9.4% after hiking its mid-term financial targets on the back of demand for gas turbines and data center equipment as well as restructuring progress in its Gamesa wind turbine unit.
The retreat in European shares is a setback after the index closed at a record high on Wednesday. Adding to investor concerns was economic data from China, which cooled more than expected at the start of the fourth quarter, and the clouded outlook for interest-rate cuts in the US.
“The nervousness is palpable in markets and it stems from different corners: there’s the really bad data coming from China, there are questions whether AI capex will pay off and you have uncertainty on the Fed and US data,” said Arnaud Girod, head of economics and cross-asset strategy at Kepler Cheuvreux in Paris.
In the luxury sector, Richemont rose 7.5% after the Swiss group’s sales climbed on better-than-expected demand in the Americas and the region including China, the latest sign the luxury industry is emerging from its slump.
Source : Bloomberg.com
