American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Latest News

European stocks slip as tech and auto sectors plunge, inflation data fuels rate cut hopes

by admin October 3, 2024
October 3, 2024

European stock markets closed lower on Thursday, with the technology sector leading the decline, notably impacted by German software giant SAP.

Investors were also digesting critical inflation data from the Eurozone and its major economies, sparking further concerns about economic stability.

The pan-European STOXX 600 index (.STOXX) dropped 0.8%, settling at 516.80 points, as several sectors faced notable losses.

Automotive sector hits 12-month low

Among the sectors hit hardest was the automotive industry, with the STOXX 600 Automobile Index (.SXAP) plunging 2.1%, marking its weakest performance in nearly a year.

This decline was largely attributed to a significant 4.7% slump in Stellantis (STLAM.MI), following a downgrade by Barclays from “overweight” to “equal weight.”

Tech sector pressured by SAP news

SAP (SAPG.DE) was another major drag on the market, losing 1.5% after reports surfaced that US prosecutors are broadening their investigation into potential price-fixing by the German software developer.

This news pushed the broader European tech sector down by nearly 1%, contributing significantly to the market’s overall decline.

All major sub-sectors of the STOXX 600 closed in the red, with France’s CAC 40 (.FCHI) suffering the steepest losses, falling 1.1%.

Germany’s DAX (.GDAXI) followed closely, dipping 0.9%.

Meanwhile, the UK’s FTSE 100, which had opened 0.3% higher on reports of potential future interest rate cuts from the Bank of England, ended the day flat as early gains were wiped out.

Bank of England Governor Andrew Bailey’s comments, suggesting that interest rates could be reduced more swiftly if inflation continues to show signs of easing, initially lifted UK stocks but failed to maintain momentum.

Investors turn cautious amid mixed economic signals

Several factors weighed on market sentiment, according to Ben Laidler, head of equity strategy at Bradesco BBI.

“The stalling of the Chinese rally, rising oil prices, higher bond yields, and a stronger dollar are challenging the recent bullish narrative,” Laidler told Reuters.

We’re also seeing some natural profit-taking, with traders awaiting clearer signals from China’s reopening and Friday’s US payroll report.

Eurozone business activity slows further

Adding to investor concerns, fresh PMI (Purchasing Managers’ Index) data showed that business activity in the Eurozone contracted in September, dropping to 49.6 from August’s 51.

This marks the first contraction since January, underscoring growing weakness in the region’s services sector.

Among major European economies, Italy’s service sector barely grew, while France experienced a contraction, reversing the Olympic-driven boost seen in August.

In Germany, services activity slowed for the fourth straight month, nearly grinding to a halt.

These PMI figures have heightened expectations that the European Central Bank (ECB) could opt for an interest rate cut at its next meeting on October 17, as the economic outlook for the region remains uncertain.

The data and market performance highlight a challenging economic environment in Europe, with investors carefully monitoring developments in inflation, central bank policies, and global economic signals in the weeks ahead.

The post European stocks slip as tech and auto sectors plunge, inflation data fuels rate cut hopes appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
OPEC sticks to output policy as Iraq, Kazakhstan, and Russia pledge to offset overproduction
next post
EU pushes ahead with tariffs on Chinese EVs despite divided support

Related Posts

Gold must demonstrate resilience to downward pressure for...

December 5, 2024

Why Mexico’s election is more important than ever...

June 2, 2024

Rescuers in British Columbia pause efforts to save...

April 15, 2024

Dutch PM Rutte to become next NATO secretary-general

June 27, 2024

Trump threatens 200% tariffs on European alcohol as...

March 15, 2025

Mars could be driving ‘giant whirlpools’ in the...

March 13, 2024

Greenland election reignites independence debate as Trump pushes...

March 11, 2025

Iran accuses Israel of killing Iranian military commanders...

April 3, 2024

Eli Lilly stock surges 11% on obesity pill’s...

April 18, 2025

France’s most streamed singer calls on voters to...

July 4, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • GMS stock jumps 29% on takeover interest from Home Depot, QXO, analysts raise PTs

      June 22, 2025
    • Japan’s rice price surge: what’s driving it and why it could spark a political crisis

      June 22, 2025
    • BofA raises STOXX 600 target amid resilient global growth, warns on Mideast risks

      June 22, 2025
    • Palantir co-founder: US must prevent Iranian nukes

      June 22, 2025
    • Fed governor Waller advocates for July rate cut amid tariff, labor market outlook

      June 21, 2025

    Categories

    • Business (3,209)
    • Investing (2,537)
    • Latest News (2,000)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved