European shares follow Wall Street lower

by Jonathan Adams
European stock markets

The pan-European Stoxx 600 index dropped 0.43% at 505.61 by the end of trading

European shares recorded slight losses on Wednesday with investors seemingly taking their cue from a weak start to the session in the US amid the latest raft of company results.

The pan-European Stoxx 600 index dropped 0.43% at 505.61 by the end of trading.

Germany’s Dax meanwhile dropped 0.27% to 18,088.70, alongside an identical move lower for the FTSE Mib to 34,217.12.

Cautious remarks from the head of Germany’s central bank also weighed on investor sentiment.

Joachim Nagel, president of Germany’s Bundesbank, said that he would support a rate reduction in June, if upcoming economic data increases the ECB’s confidence that inflation would soon return back to the 2% target.

I am not fully convinced yet that inflation will actually return to target in a timely and sustained manner, Nagel told a DZ Bank Capital Markets conference.

US tech giant Microsoft is due to publish its first quarter results on Thursday, while key U.S. price data would be published on Friday.

In equity news, Evotec shares were 34% lower to six-year lows after the firm said demand and the economic climate would only improve by the end of 2024.

Kering shares plunged 7% as the luxury goods company forecast a 40-45% slump in first-half operating profit.

Elsewhere, computer chip supplier ASMI advanced as it raised its second-quarter revenue forecast, citing stronger-than-expected Chinese demand and higher sales in advanced logic and memory.

Volvo Cars closed flat despite the Swedish automaker posting an increase in adjusted operating earnings, helped by lower material costs and higher volumes.

Allfunds slumped 11% on reports the fund distribution firm abandoned discussions over a potential sale.

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