European stocks close lower
Capitals, May 17 / WAM / European stocks closed lower today as investors remained cautious after a policymaker’s statements about monetary policy expectations, while Richemont shares recorded the best daily performance in more than three months after announcing a management restructuring.
The European STOXX 600 index fell 0.1%, and the real estate sector, which is highly sensitive to interest rates, was among the biggest losers under the pressure of rising euro zone bond yields.
A report showed that European Central Bank Council Member Isabel Schnabel called for caution regarding further interest rate cuts after the first possible cut in June, pushing doubts about expectations of interest rate cuts to the forefront.
A final reading of inflation in the euro zone confirmed a previous report that showed prices rising 2.4% year-on-year in April.
Policymakers at the European Central Bank did not provide clear expectations for cutting interest rates after June, and policymakers at the US Federal Reserve did not openly change their views on the timing of interest rate cuts despite recent encouraging US economic data.
The main stock index managed to achieve a weekly gain for the second time in a row, rising in nine consecutive sessions until Wednesday, and the strong business results season provided a new boost to the positive sentiment common among investors.
Data from the London Stock Exchange Group stated that of the 239 companies in the STOXX 600 index that announced quarterly profits as of Tuesday, more than 60% of them exceeded analysts’ estimates, that is, more than the long-term average of 54%.
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