© Reuters. Traders go about their business on the New York Stock Exchange on January 9, 2024. Photograph: Brendan McDermid – Reuters.
(Reuters) – European stocks closed lower on Tuesday amid thin trading ahead of the European Central Bank’s monetary policy meeting this week, while a rise in mining stocks helped limit losses.
The index closed down 0.3 percent, and shares of interest rate-sensitive utilities and real estate companies were among the biggest losers, falling 0.8 percent and 1.3 percent, respectively, while shares of health care companies that are heavy on the index fell 0.9 percent.
But shares of the mining and precious metals sector rose 2 percent.
Shares of luxury products companies exposed to China also rose, including LVMH, Kering, and Richemont, and the rise ranged between 1.1 percent and 1.7 percent.
Before the European Central Bank’s interest rate decision, data released on Tuesday showed consumer confidence in the region falling by one point in January compared to December.
Melanie Debono, chief European economist at Pantheon Macroeconomics, said: “We doubt that this decline represents the beginning of a new trend, and we expect a more sustainable recovery soon after the sharp decline in inflation linked to repeat purchases.”
Investors expect interest rates to be cut by about 130 basis points this year, with an approximately 97 percent chance that the first cut will be in June.
Swatch shares fell 4.6 percent after the results of the largest watchmaker in the world for 2023 fell below market expectations.
Allfunds shares jumped 8.7 percent after Reuters reported that Six Group, which operates the Swiss stock market, is considering submitting an offer to buy the finance company.
Dutch technology investor Prosus also rose 5.4 percent after checks conducted by Reuters showed that China’s gaming regulator had canceled draft rules to control spending on video games from its website.
Halofresh stock also jumped 12 percent after Morgan Stanley (NYSE:) raised the company’s rating to “outperform.”
(Prepared by Muhammad Ali Faraj for the Arabic Bulletin – Edited by Doaa Muhammad)
2024-01-23 18:19:00
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