European Stocks Retreat Slightly, Moving Away from Record Highs
European stocks weakened slightly on Thursday (February 19th), after hitting record levels the previous day. The Euro Stoxx 50 and Stoxx Europe 600 indices both fell around 0.1%, indicating investors were beginning to adopt a more cautious stance.
Market sentiment was dampened by escalating US-Iran tensions, which rekindled the risk-off mood. At the same time, market participants also weighed the release of major companies' financial reports, which signaled differing directions across sectors.
The market also digested the Fed's meeting minutes, which showed that many policymakers assessed that the process of reducing inflation (disinflation) could be slower and more uneven than previously expected. This signal prompted investors to hold back aggressiveness, as the global interest rate path could remain tight for longer.
At the corporate level, Nestlé rose more than 3% after posting fourth-quarter sales growth that exceeded expectations. This increase helped offset the overall index decline, particularly in consumer defensive stocks.
Meanwhile, Rio Tinto rose around 2%, despite posting flat annual profits that were still below market expectations. This positive reaction indicates that some investors view commodity valuations and prospects as still attractive, even if performance figures are not entirely satisfactory.
On the market side, Airbus plunged more than 5% after cutting its major aircraft production target due to unresolved supply constraints. In Germany, Vonovia rose around 1.5% after receiving an upgrade from Morgan Stanley—a U-turn after nearly two years of holding an underweight recommendation.
Source: Newsmaker.id
