FRANKFURT: European shares closed lower on Wednesday, dragged by technology and healthcare stocks, while investors remained concerned about impending US tariffs set to take effect next week.
The pan-European STOXX 600 index ended 0.7% lower, making the index’s fourth decline in five trading sessions.
The healthcare sub-index slipped to two-month lows, hit by losses in heavyweight Novo Nordisk.
The technology component sank about 2%, dragged by a 6.7% fall in Tietoevry after Morgan Stanley downgraded the IT services firm’s stock to “equal weight” from “overweight”.
Energy stocks were among a few bright spots, helped by a more than 1% jump in crude prices.
Still, the STOXX 600 index is on track for its best quarter in two years, primarily on hopes that a historic German fiscal package would spur growth in the region’s largest economy.
The region has also attracted investors looking for value beyond US equities as the Trump Administration’s trade policy fuels US slowdown worries.
“There is concern about the looming tariffs and what could be in store for European manufacturers and exporters. But overall, sentiment towards Europe has turned a corner, and I don’t think we’re seeing a significant reversal,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.
Earlier this week, global risk sentiment improved as US President Donald Trump signalled a more measured approach to trade policy ahead of the April 2 deadline.
Meanwhile, the European Central Bank must be pragmatic and data-driven in setting its interest rates, governing council member Fabio Panetta said in a letter to the Financial Times.
In Britain, finance minister Rachel Reeves cut the government’s plans for spending increases to get back on track towards her fiscal targets, but risks in the world economy could raise the prospect of tax hikes later this year.
Local bond investors cheered lower-than-expected British borrowing plans, with Britain’s 30-year bond yield falling 6 basis points (bps) at 5.306%.
Comments
Comments are closed for this article.