Europe midday: Shares slip as Russia nuclear talk worries investors
European shares slipped into the red at lunchtime after data confirmed eurozone inflation had risen to 2% and investors sought safer havens as Russia said the use of long-range missiles against its territory could prompt a nuclear response.
The pan-regional Stoxx 600 index was up 0.14% to 503.58. Investors are also keenly awaiting results from the new tech darling Nvidia, although its shares were it overnight on a report that its new Blackwell artificial intelligence chip was overheating when connected in customised server racks.
“After last week’s whirlwind of activity, US market took a breather yesterday evening with a more subdued session,” said Hargreaves Lansdown analyst Matt Britzman.
“While the market’s tendency to rebound remained intact, investor caution lingered as they weighed the implications of (US President-elect Donald) Trump appointees and potential tariff policies.”
“With homebuilder sentiment hitting a seven-month high and major earnings from Wal-Mart and Nvidia on the horizon, yesterday’s measured tone reflected a market waiting for more direction.”
In Moscow, the Kremlin issued a "revised" nuclear doctrine in response to US President Joe Biden's decision to lift a ban on Ukraine using longer range missiles against Russia itself.
Inflation in the eurozone rebounded sharply as expected in October, rising from a three-year low and back in line with the European Central Bank's target.
Data from Eurostat on Tuesday showed that the annual change in consumer prices was 2.0% last month, with the rate of inflation jumping from 1.7% in September – its lowest level since April 2021.
This was in line with the consensus forecast.
In equity news, shares in Thyssenkrupp gained more than 9% after narrowing full-year losses and booking a €1bn impairment on its struggling steel division. The firm cut its net loss to €1.5bn from €2bn.
Imperial Brands gained as the cigarette and vape maker reported higher annual profits and cut losses at its new products division, boosted by a sharp jump in revenues.
Big Yellow and Diploma faltered after results.
Aeroports de Paris rose after Stifel upgraded the stock to 'buy' from 'hold'.
Reporting by Frank Prenesti for Sharecast.com