Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

European stocks fall as healthcare and banking sectors suffer losses

Published 12/04/2022, 08:30
Updated 12/04/2022, 17:27
© Reuters. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, April 8, 2022.    REUTERS/Staff

© Reuters. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, April 8, 2022. REUTERS/Staff

By Sruthi Shankar and Anisha Sircar

(Reuters) -European shares fell on Tuesday as Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) slumped after a big stake sale, while a U.S. reading on inflation kept aggressive Federal Reserve tightening bets from ramping up.

The pan-European STOXX 600 index fell 0.3%, paring some losses from earlier in the day, with healthcare stocks leading losses, and banks among the worst hit.

Deutsche Bank and Commerzbank fell 9.4% and 8.5%, respectively, after an undisclosed investor sold stakes of more than 5% in Germany's top lenders.

The appetite for shares firmed slightly from earlier in the day after U.S. data showed consumer prices in the world's largest economy rose largely in line with estimates, pushing U.S. Treasury yields lower. [US/]

After a strong rebound from March lows, the STOXX 600 has been stuck in a range on worries about the fallout of the Ukraine war, aggressive rate hikes by the Federal Reserve to tame inflation and rising coronavirus cases in China.

"That sinking feeling hit European shares amid concerns that inflationary pressures are still mounting and growing evidence that consumer confidence is suffering amid the cost of living squeeze," said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown (LON:HRGV).

"The increasingly entrenched Ukraine conflict has already sent commodity prices soaring... The sanctions screw expected to be turned tighter on Russia, and the European Union is thought to be inching closer towards agreeing a Russian oil embargo," she said, adding that the associated supply fears were pushing up crude prices.

Oil & gas stocks gained 1.3% as crude prices rose after falling below $100 a barrel in the previous session. [O/R]

U.S. quarterly earnings season is set to begin this week with Wall Street banks. In Europe, the reporting season will kick into high gear later this month, with analysts' predicting a 19.9% rise in profit for STOXX 600 companies, as per Refinitiv data.

Italian defence group Leonardo rose 2.7% as Deutsche Bank upgraded the stock to "buy" on expectations of higher defence spending in the company's main markets.

© Reuters. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, April 8, 2022.    REUTERS/Staff

Nokia (HE:NOKIA) slipped 1.4% after Pekka Lundmark, chief executive officer of the telecoms equipment maker, told Reuters the firm is pulling out of the Russian market.

German investor sentiment fell by less than expected in April, a survey showed, as a decline in inflation expectations gave some cause for hope about the outlook for Europe's largest economy.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.