European stocks closed lower on Tuesday, with Swedish electronic games company Empresser falling after it issued a warning about its annual profit, while concerns about consumer spending were reinforced by US retail sales data and a bleak outlook from Home Depot. The retail companies sub-index was the hardest hit. Home Depot cut its annual sales forecast, expecting a larger-than-expected drop in profits, while data indicated US retail sales rose in April by half the amount the market had expected. Investor sentiment has been affected in the past few weeks by talks to raise the US public debt ceiling, as well as supportive rhetoric from European Central Bank policymakers. This offset the impact of European companies reporting strong quarterly results. Economists, in a Reuters poll, expected the European Central Bank to raise interest rates by 25 basis points in each of its next meetings, and many of them said that interest increases may continue in the future. The euro zone recorded economic growth of 0.1 percent on a quarterly basis in the first three months of the year, with the bloc’s trade surplus benefiting from increased employment and sharp growth in exports. The automakers index fell 0.9 percent after weak data from China fueled fears of an economic slowdown. Embriser Group shares fell 15.9 percent to the bottom of the STOXX 600 after it cut its forecast for annual adjusted earnings before interest and taxes.
Source: Reuters
2023-05-16 17:18:15
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