European shares started the day with losses, particularly in the technology and real estate sectors. Investors are awaiting euro zone inflation data to gain insights into the possibility of interest rate cuts after June. The pan-European STOXX 600 was down 0.2% but still on track for its second consecutive weekly gain due to strong corporate earnings.
Investors are eagerly awaiting the final euro zone inflation reading, which is set to be released later today. This comes after a report revealed that European Central Bank board member Isabel Schnabel has urged caution when it comes to further rate cuts, following a potential initial cut in June.
The technology and real estate sectors have been hit the hardest, with both experiencing a 0.7% drop. On the other hand, personal and household goods have seen gains, with luxury group Richemont surging 6% following the release of their quarterly results.
H&M’s stock experienced a 2.5% increase following an upgrade from RBC, who raised their rating for the fashion retailer to “outperform” from “sector perform”.
On the other hand, French re-insurer Scor saw a significant drop of 8.0% after releasing their first-quarter results.
Nibe, a Swedish heat-pump maker, saw a decline of 4.6% after Citigroup downgraded their rating from “buy” to “neutral”. Additionally, German utility E.ON experienced a 4.1% decrease due to trading ex-dividend.