Europe midday: Shares slip further on rate worries; Chipmakers struggle
European shares slipped further into the red on Monday as investors awaited key interest rate decisions this week and eyed the latest developments in China's struggling property market.
The pan-European Stoxx 600 index was down 0.61% with all major regional bourses lower. Investors will be focused on rate decisions from the US, UK and Japan.
‘’A watchful mood is settling ahead of the key interest rate decisions this week amid wariness about the latest twist in the Chinese property crisis," said Hargreaves Lansdown analyst Susannah Streeter.
"The detention of Evergrande employees, working in wealth management, has prompted a big slide in the real estate giant’s share price amid nervousness that fresh fragilities will be uncovered."
"Authorities are swooping deeper into the internal workings of the company, as worries swirl about the sector’s woes potentially causing pools of financial instability elsewhere requiring fresh patch-ups, which could further drag down economic growth."
In equity news, shares in Martin Sorrell's digital advertising agency S4 Capital slumped by almost a quarter as the company warned on earnings for the second time in just over a month.
Shares in Nordic Semiconductor fell almost 12% after a report that Taiwan Semiconductor Manufacturing, the world’s largest contract chipmaker, had asked suppliers to delay deliveries amid concerns over slowing demand.
Mondi shares were up as the paper and packaging firm agreed a €775m deal to finalise its exit from Russia.
Reporting by Frank Prenesti for Sharecast.com