The DAX index in Germany shed 0.1%, the CAC 40 in France declined 0.2%, and the FTSE 100 in the U.K. slid 0.4%
European stock markets edged lower Thursday despite global rally, as investors digested some downbeat earnings.
At 07:25 GMT, the DAX index in Germany shed 0.1%, the CAC 40 in France declined 0.2%, and the FTSE 100 in the U.K. slid 0.4%.
European markets are bucking the general positive mood Thursday, weighed down by some disappointing corporate news.
Siemens stock dropped nearly 2% after the German engineering group reported a 2% decline in second quarter profit at its industrial business, after suffering a slowdown at its flagship factory automation division.
Deutsche Telekom stock dropped 0.6% despite the German telecommunications giant backing its full-year guidance after delivering higher revenue in the first quarter.
EasyJet stock plunged 6% after the budget airline posted a larger than expected pretax loss for H1 even as it said inflationary pressures on the sector were beginning to ease.
This was some good news, with BT Group stock soaring 9% after the telecoms group nudged its dividend higher, achieving its £3 billion cost-cutting program a year early.
The losses in Europe, though quite small, buck the global trend, after Wall Street’s rally to new record highs overnight and the gains in Asia.
The main catalyst was the April U.S. CPI coming below expectations, raising hopes the Fed can trim interest rates this year, possibly starting in September.
Higher-than-expected U.S. consumer prices in the first quarter had resulted in a sharp paring of rate cut bets and even stoked some concerns of an additional hike, which would have hit growth in the country.
The ECB is expected to cut rates before the Federal Reserve, likely in June, and there are a number of central bank speakers throughout the day, both in Europe and in the U.S., to provide further clues of their thinking regarding future monetary policy.
