Europe midday: EZ survey data hits Stoxx; WoS surges on results

27th Jun 2024 11:34

(Sharecast News) - European shares turned red on Thursday as investors digested weaker-than-expected eurozone economic sentiment data, while shares in Swedish fashion chain H&M slumped on poor sales figures.

The pan-regional Stoxx 600 index was down 0.22% to 516.22. France's CAC 40 was 0.49% lower as voters prepared to go to the polls for the first round of voting in the country's national election where far-right parties were expected to put up a strong challenge.

"While we saw early gains for French stocks, the fact that we are seeing them fade once again comes as no surprise as we approach the weekend election. Yesterday saw yet another poll that pointed towards further gains for the Far-Right National Rally party, with a (President Emmanuel) Macron loss becoming increasingly likely," said Scope Markets analyst Joshua Mahony.

In economic news, the eurozone June Economic Sentiment Indicator declined slightly in June to 95.9 from 96.1 in May, missing expectations of a small rise, while employment expectations fell below their long-term average to 99.7.

Eyes are focused on the US personal consumption expenditures price index - the Federal Reserve's preferred inflation gauge - on Friday, with traders hoping easing price pressures will allow room for a rate cut this summer.

In equity news, H&M plunged by 14% after unstable weather in large markets at start of June had a negative impact on sales.

Watches of Switzerland surged after holding annual guidance despite weaker profits driven by lower UK sales of luxury timepieces.

Reporting by Frank Prenesti for Sharecast.com