Europe: Shares fall on healthcare, financials drag; focus on US-EU trade deal
The pan-European Stoxx 600 index closed down 0.37 per cent at 544.95. Most regional indexes declined, with Spain's IBEX falling 1.1 per cent.
On Monday, the European Union accused the US of resisting a trade deal and warned of countermeasures if no agreement is reached.
US President Donald Trump, meanwhile, said he was open to talks, adding that EU officials would visit the US for trade negotiations.
'What we're seeing here is just a reflection of uncertainty surrounding EU-US trade talks,' said Fiona Cincotta, senior market analyst at City Index.
'That radio silence is just unnerving investors. They want to know that an improvement can be made on (the) 30 per cent (tariff rate).'
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
The ZEW economic research institute said German investor morale rose more than expected in July, but economists warned that optimism would vanish without an EU-US trade deal.
Across the Atlantic, big banks kicked off the earnings season, with investors closely assessing outlooks and tariff-related uncertainties. JPMorgan Chase raised its 2025 net interest income forecast and beat second-quarter profit estimates.
In the euro zone, the banking index slipped 1.1 per cent. Germany's Commerzbank, Italy's Banco BPM and France's Societe Generale each fell more than 2 per cent.
Healthcare also lagged, with Danish drugmaker Novo Nordisk sliding 2.3 per cent.
Ericsson reported upbeat results but the Swedish telecom equipment maker's shares declined 7.7 per cent after it warned of tariffs crimping its margin growth.
Barratt Redrow slid 9.4 per cent after Britain's largest homebuilder reported that home completions missed expectations for fiscal 2025.
UK's B&M slumped 9.1 per cent to a more-than-five-year low, after the discount retailer reported higher like-for-like revenue in its domestic business in the first quarter.
Curbing losses in the sector, the biggest supplier of computer chip-making equipment ASML climbed 2.7 per cent ahead of its earnings on Wednesday.
News on Tuesday that US consumer prices increased by the most in five months in June suggested tariffs were starting to fuel inflation, potentially keeping the Federal Reserve on the sidelines until September.
Among other stocks, Orsted gained 8.3 per cent after Morgan Stanley raised its rating on the Danish offshore wind developer to 'overweight' from 'equal weight'.
Accelleron rose 8.7 per cent to a record high after the engine components maker increased its revenue forecast for 2025. REUTERS
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
33 minutes ago
- CNA
Bank of America expects to launch stablecoin, Morgan Stanley weighs use
NEW YORK :Bank of America is working on launching a stablecoin, and investors can expect the lender to move forward with the cryptocurrency, CEO Brian Moynihan said on Wednesday, without giving a timeline. Stablecoins, a type of cryptocurrency designed to maintain a constant value, are usually pegged to a fiat currency such as the U.S. dollar and are commonly used by crypto traders to move funds between tokens. "We feel both the industry and ourselves will have responses. We've done a lot of work," the CEO of the second-largest U.S. bank said. "We are still trying to figure out how big or small it is, because in some places there are not big amounts of money movement. So you would expect us all to move, our company to move on that," Moynihan told analysts on a post-earnings conference call. Moynihan said Bank of America was trying to understand client demand, which was not high at this point, and would roll out a stablecoin at an appropriate time, likely in partnership with other players. U.S. President Donald Trump has promised to be the "crypto president," popularizing its mainstream use in the country. A series of crypto industry-friendly bills is expected to progress through Congress this week, paving the way for digital assets to potentially further integrate into traditional finance. One of the most notable is a bill that would establish a regulatory framework for stablecoins and is likely to advance to Trump's desk for approval. The banks are still awaiting legal clarity, Moynihan said, explaining why progress has been slower than some investors anticipated. Morgan Stanley Chief Financial Officer Sharon Yeshaya said on Wednesday the bank was following stablecoin developments closely. "We're looking both at the landscape, the uses, and the potential uses for our own client base. But, it really is a little early to tell, especially for the businesses we run versus businesses that you might see from competitors, on how a stablecoin would play in," she added. Citigroup CEO Jane Fraser also said the bank may issue a stablecoin to facilitate digital payments. "We are looking at the issuance of a Citi stablecoin," she told analysts after reporting earnings on Tuesday. "This is a good opportunity for us." JPMorgan Chase CEO Jamie Dimon, who has been a vocal skeptic of bitcoin, said on Tuesday the bank will be involved in stablecoins, without giving details.
International Business Times
2 hours ago
- International Business Times
Donald Trump to Meet UK PM Keir Starmer in Scotland to Finalize Trade Talks
U.S. President Donald Trump announced on Tuesday that he expects to meet with British Prime Minister Keir Starmer later this month in Aberdeen, Scotland. The meeting aims to fine-tune elements of a U.S.-UK trade deal that both leaders initiated on June 16 during the G7 Summit in Canada. A White House official confirmed that Trump's visit to Scotland is scheduled from July 25 to July 29. He plans to visit both his Turnberry and Aberdeen golf courses, mirroring a similar trip made during his 2016 presidential campaign. The meeting with Starmer is expected to focus on unresolved trade issues, particularly involving tariffs on steel and aluminum. "We're going to have a meeting with him, probably in Aberdeen," Trump said. "We're going to do a lot of different things, also refine the trade deal that we've made." The current trade agreement reaffirms tariffs and quotas on British automobiles while removing tariffs on the U.K. aerospace sector. However, negotiations continue over steel and aluminum duties, which remain a sticking point. Trump famously praised Britain's Brexit vote during his 2016 visit to Scotland, celebrating at Turnberry while accompanied by traditional Scottish bagpipers. Turnberry, a historic Open Championship course, was purchased by Trump in 2014. Looking ahead, Trump is also scheduled for a state visit to Britain from September 17 to 19. He will be the guest of King Charles at Windsor Castle, following a similar visit hosted by the late Queen Elizabeth II in 2019. (With inputs from agencies)
Business Times
3 hours ago
- Business Times
US producer prices unchanged in June
[WASHINGTON] US producer prices were unexpectedly unchanged in June as an increase in the cost of goods because of tariffs on imports was offset by weakness in services. The unchanged reading in the producer price index for final demand last month followed an upwardly revised 0.3 per cent rise in May, the Labor Department's Bureau of Labor Statistics said on Wednesday (Jul 16). Economists polled by Reuters had forecast the PPI rising 0.2 per cent, after a previously reported 0.1 per cent gain in May. In the 12 months through June, the PPI increased 2.3 per cent after advancing 2.7 per cent in May. Data on Tuesday showed consumer prices picking up in June, with solid gains in tariff-exposed goods like household furnishings and supplies, appliances, sporting goods and toys as well as windows, floor coverings and linens. Economists said June's Consumer Price Index report was likely the start of the tariff-induced increase in inflation from the import duties announced in April. But some expected slower services price growth because of softening demand for travel and hotel accommodation to partially offset the boost to inflation from tariffs. President Donald Trump last week announced higher duties would come into effect on August 1 for imports from a range of countries, including Mexico, Japan, Canada and Brazil, and the European Union. Economists expected these tariffs would keep goods prices elevated through the end of the year. The Federal Reserve is expected to leave its benchmark overnight interest rate in the 4.25 per cent-4.50 per cent range at a policy meeting later this month. Minutes of the central bank's June 17-18 meeting, which were published last week, showed only 'a couple' of officials said they felt rates could fall as soon as the July 29-30 meeting. Prior to the PPI report, economists estimated that the Personal Consumption Expenditures (PCE) Price Index, excluding the volatile food and energy components, increased 0.3 per cent in June after rising 0.2 per cent in May. The so-called core PCE inflation was forecast to have advanced 2.8 per cent on a year-over-year basis last month, after climbing 2.7 per cent in May. The core PCE price index is one of the inflation measures tracked by the US central bank for its 2 per cent target. REUTERS
