“European Stocks Fall on Nestle and Energy Losses, Uncertainty Over US Debt Ceiling Agreement”

(Reuters) – Major stock indexes in Europe fell on Tuesday on losses in shares of Nestle Group and major energy companies and uncertainty over whether the US Congress will approve the initial debt ceiling agreement.

The index closed down 0.9 percent and is on track to record its largest monthly decline this year, despite recording this month its highest level in more than a year.

The initial agreement to raise the $31.4 trillion US debt ceiling will face its first test in Congress on Tuesday.

On monetary policy, European Central Bank member Gediminas Simkos indicated that the bank may raise interest rates in June and July.

Meanwhile, the ECB warned that major banks in the region could take a hit if their financial clients, such as funds, insurance companies and clearing houses, withdraw their deposits or run into trouble.

Nestle shares fell 3.3 percent after the company appointed Anna Manz, CFO of the London Stock Exchange Group (LON:) as its new financial director.

The food and beverage sector index fell 2.7 percent, and energy stocks fell 2 percent, following a decline.

The share of the Swedish gaming company Empresser was the leader on the Stoxx 600 index, after it jumped 11.2 percent.

(Prepared by Muhammad Ali Farag for the Arabic Bulletin – Edited by Hassan Ammar)