Europe midday: Shares extend losses on EZ ind data; Wise slumps

13th Jun 2024 11:40

(Sharecast News) - European stocks extended losses on Thursday on weaker-than-expected eurozone industrial production data, while shares in UK fintech firm Wise plunged on a weaker income forecast.

The Stoxx 600 index was down 0.84% in early deals to 518.50. The US Federal Reserve on Wednesday held the federal funds rate at 5.25% to 5.5% and forecast only one rate cut this year, a far cry from the three cuts projected in its March meeting, although its "dot plot" chart indicated more cuts next year worth a full percentage point.

Meanwhile the latest US inflation data showed no change in May, beating expectations of a 0.1%rise. On an annual basis prices rose 3.3%, also below expectations.

Eurozone industrial production unexpectedly ticked lower in April, official data showed on Thursday.

Seasonally-adjusted industrial production eased 0.1% in the single currency bloc, compared to an 0.5% improvement in March. Analysts had been expecting a small 0.2% uplift.

Across the wider EU, industrial production increased 0.5%. The biggest faller in both areas was intermediate goods, which saw output fall 0.2% in the EU and 0.4% in the eurozone.

In equity news, Atos rallied from morning losses after the French IT firm announced the sale of its consultancy unit Worldgrid days after agreeing to a rescue deal that would dilute the holdings of existing shareholders.

Shares in UK money transfer firm Wise slumped by a fifth at one stage as it forecast lower income growth in the medium term.

Halma shares jumped as the company reported another year of record profit and revenue after a solid performance in the safety and the environment & analysis sectors.

Reporting by Frank Prenesti for Sharecast.com