Europe close: Stocks dip as French elections near

26th Jun 2024 16:46

(Sharecast News) - European stocks slipped into the red on Wednesday as investors digested consumer survey data from Germany showing an unexpected drop in consumer sentiment.

They were likely also displaying some increased caution heading into the first round of French legislative elections at the weekend.

The pan-regional Stoxx 600 index was down 0.56% to 514.81 with all the major European bourses following suit.

France's CAC 40 was 0.69% lower to 7,609 points ahead of the first round of national elections on Sunday with polling showing far-right parties leading a leftist alliance and President Emmanuel Macron's centrists.

In economic news, a closely followed gauge of consumer sentiment in Germany unexpectedly fell further into negative territory, declining for the first time in five months.

The GfK's forward-looking Consumer Confidence Survey for July fell to -21.8 from a downwardly revised -21.0 the month before, missing economists' estimates for an improvement to -18.9.

In equity news, shares in Volkswagen Group fell, having announced during the previous session that it would invest up to $5bn in US electric-vehicle maker Rivian as part of a new joint venture.

Anglo American shares finished in the black despite its De Beers diamond unit reporting another dip in sales as it warned of a "protracted" recovery in demand.

In what is generally a quieter period for rough diamond sales, De Beers' fifth sales cycle generated $315m, down from $383m in the fourth cycle and $446m in the third. However, this was also down from $456m in the fifth cycle of 2023.

Liontrust Asset Management slipped 3% after reporting a 23% drop in annual profit and net outflows of £6.1bn.

Royal Mail owner IDS edged higher as EP Group, owned by the billionaire Daniel Kretinksy, published its formal takeover offer.