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Europe close: Stocks drift lower ahead of earnings deluge, inflation readings

Published 24/04/2023, 18:30
Europe close: Stocks drift lower ahead of earnings deluge, inflation readings
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Sharecast - US tech giants Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT) and Meta Platforms Inc (NASDAQ:META) were all due to report earnings, while in the UK investors were waiting on updates out of Standard Chartered PLC (LON:STAN), Barclays (LON:BARC) and NatWest (LON:NWG).

Investors were also waiting on key inflation data due out in the US and euro area towards the end of the weel.

"Monday's session seems to provide the template for most of the week – tentative gains that then slip away," said IG chief market analyst Chris Beauchamp.

"With such an action-packed week investors are best described as ‘skittish’, fretting that data will prompt a reversal in markets but at the same time hoping for just enough good news to give stocks a reason to move out of their recent narrow range."

The pan-European Stoxx 600 index drifted lower by 0.01% to 468.97, with all the major bourses slightly off.

In economic news, German business sentiment improved slightly in April, according to a survey released on Monday by the Ifo Institute.

The business climate index rose to 93.6 from 93.2 in March, although this was a touch weaker than expectations for a reading of 94.0.

Meanwhile, the expectations index ticked up to 92.2 in April from 91.0 the month before, and the current situation index printed at 95.0, down from 95.4.

On the equities front, Dutch health tech firm Philips (LON:0LNG) traded 14% higher, as it reported firmer sales, but a widening net loss due to its restructuring and a litigation provision.

Credit Suisse (SIX:CSGN) reported earnings for what may be the last time in its 167-year history after its emergency sale to UBS (NYSE:UBS). The Swiss lender revealed it suffered net asset outflows of 61.2bn Swiss francs ($68.6bn) during its first-quarter collapse.

German energy company Uniper (ETR:UN01) also surged, with shares up 8%.

"A forecast deterioration in the health of the global economy is weighing on minds, pushing equities lower as investors mull the impact of further punishing rate hikes," said Hargreaves Lansdown analyst Susannah Streeter.

"Oil prices have slid further back, largely erasing gains made since OPEC+ announced production cuts, with Brent crude dipping closer to $80 a barrel. The FTSE 100 has opened lower, with BP (LON:BP) and Shell (LON:RDSa) and miner Anglo American (LON:AAL) and Antofagasta (LON:ANTO) among the fallers, as investors assess the prospect that demand for energy and metals will wane if economies contract."

Read more on Sharecast.com

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