Breaking News
Get 40% Off 0
👀 Reveal Warren Buffett's stock picks that are beating the S&P 500 by +174.3% Get 40% Off

November rally in European stocks stalls after comments from ECB officials

Published Nov 28, 2023 03:47AM ET Updated Nov 28, 2023 12:13PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, November 21, 2023. REUTERS/Staff/File Photo
 
STOXX
+0.60%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
PRTP
-0.26%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Sruthi Shankar and Bansari Mayur Kamdar

(Reuters) -European shares fell for a second session on Tuesday, stalling November's strong run of gains, after comments by European Central Bank policymakers dampened expectations of interest rate cuts next year.

The pan-European STOXX 600 index eased 0.3%, with market heavyweights such as Novo Nordisk (NYSE:NVO) and LVMH falling 3.1% and 1.8%, respectively.

The healthcare sector slid 1.4%, with Belgian pharmaceutical firm Argenx tumbling 10.1% to the bottom of the STOXX 600 after an advance study of its treatment for bleeding disorder failed to meet primary and secondary endpoints.

The benchmark was still on course for its best monthly performance since January, on expectations that major central banks including the Federal Reserve and the ECB were done raising interest rates and could begin easing policy next year.

Bundesbank chief Joachim Nagel said on Tuesday the ECB may need to raise interest rates again if the inflation outlook worsened, and that the bank should not rush to ease policy too quickly after the steepest set of rates hikes on record.

ECB President Christine Lagarde said on Monday the bank's fight to contain price growth was not yet done.

"Speeches from central bank policymakers this week are aimed at curbing enthusiasm that rate cuts could come sooner rather than later," said Susannah Streeter, head of money and markets, Hargreaves Lansdown.

"Jerome Powell, chair of the Fed, is also highly likely to sing from the same song sheet when he speaks on Friday."

Investors will focus on a slew of economic data this week including euro zone inflation numbers on Thursday and U.S. Personal Consumption Expenditures index - the Fed's preferred inflation gauge - for clues on the monetary policy path.

Traders are currently pricing in a 45% chance of a first 25 bps rate cut by the ECB in April, down from about a 90% chance two weeks ago.

Meanwhile, a survey showed German consumer sentiment improved slightly heading into the Christmas month but remained at a very low level with no signs of sustainable recovery in Europe's biggest economy.

Julius Baer slid 4.7% as Morgan Stanley downgraded the Swiss bank to "underweight" from "equal-weight," concerned by the quality of some of its assets.

Ubisoft fell 9.0% after the French video game producer announced a placement of convertible or exchangeable bonds into shares.

RWE will raise investment in green energy technologies to 55 billion euros ($60 billion) over the next seven years, Germany's biggest power producer said, lifting its shares by 3.1%.

November rally in European stocks stalls after comments from ECB officials
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email