Published 21:22 IST, April 12th 2024
European shares slip ahead of ECB decision and lagarde remarks
Rate-sensitive sectors such as real estate and banks dipped 0.6 per cent and 1.0 per cent respectively.
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European shares slip: European shares dipped on Thursday as investors exercised caution ahe of a monetary policy decision by European Central Bank (ECB) and anticipated remarks by ECB President Christine Lagarde on possibility of interest rate cuts.
pan-European STOXX 600 index lost 0.3 per cent as of 0906 GMT, with telecommunications sector leing declines. Deutsche Telekom's shares dropped 5.5 per cent as company tred ex-dividend.
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All eyes were on ECB's decision, expected at 1215 GMT, with central bank likely to maintain interest rates but drawing attention to any indications of a potential rate cut in June, considering easing price pressures and ecomic weaknesses.
Rate-sensitive sectors such as real estate and banks dipped 0.6 per cent and 1.0 per cent respectively.
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" ECB has clearly signalled that it wants to see more evidence of moderating w growth before it is rey to cut interest rates," said Joost van Leenders, senior investment strategist at Van Lanschot Kempen.
STOXX 600 hit a one-month low in previous session following a US inflation report that raised concerns about Federal Reserve's interest rate plans, potentially leing ECB to cut rates sooner than expected.
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Societe Generale's shares rose 2.5 per cent after French lender anunced sale of a professional equipment financing business to rival BPCE for 1.1 billion euros ($1.18 billion).
Despite overall decline, oil and gas sector climbed 1.2 per cent, tracking an increase in crude prices.
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However, Idorsia's shares fell 19.2 per cent after Swiss biotech firm postponed its 2023 and first-quarter results publication.
AstraZeneca's shares rose 1.5 per cent after drugmaker anunced plans to increase its annual dividend by 7 per cent in 2024.
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(with Reuters inputs)
21:22 IST, April 12th 2024