Alexander Bueso Sharecast News
29 Jul, 2024 17:59

Europe close: Stocks start week on a soft note

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Eurotower, Frankfurt am Main, GermanyCourtesy of the European Central Bank

European shares were lower on Monday ahead of earnings from US tech giants later in the week and a policy decision from the US Federal Reserve.

Market analysts also noted concerns around the growth outlook in China, which according to ING offset the latest worrisome headlines out of the Middle East.

The pan-regional Stoxx 600 index drifted lower by 0.20% to 511.79. Apple, Microsoft, Amazon and Meta were all scheduled to report along with McDonald’s, Boeing, PayPal, Chevron and Exxon Mobil, starting from Tuesday night.

Inflation data from the eurozone was also due out, starting with the latest CPI numbers in Germany and Spain on the following day.

Central bankers in Washington would take a decision on interest rates, and were expected to give some guidance on the timing of a cut, on Wednesday.

That was on top of rate decisions from the Bank of Japan and Bank of England scheduled for Wednesday and Thursday, respectively.

In equity news, shares in Reckitt Benckiser slumped as almost 1,000 lawsuits were filed against Abbott Laboratories and the Enfamil formula maker.

A jury on Friday found that Abbott's specialized formula for premature infants caused an Illinois girl to develop a dangerous bowel disease, ordering the healthcare company to pay $495m in damages.

Entain fell as BetMGM, the gambling company's sports betting and iGaming operator in the US, surpassed the $1bn mark for revenues in the first half, but still made a loss as a result of heavy investments during the period.

Heineken shares fell as the Dutch beverage maker announced an €874m write down of its investment in China Resources Beer and but also lifted full-year guidance.

Philips surged after second-quarter results beat forecasts.

Eni shares advanced after RBC raised the stock to "outperform" from "sector perform".

Merck shares were up as the German company raised its forecast for the group on the back of a strong operating performance at its healthcare and electronics units.

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