Europe midday: Shares slip, UK housebuilders, Zealand Pharma in focus

26th Feb 2024 11:28

(Sharecast News) - European stocks were lower on Monday after record highs last week, with UK housebuilders in focus after Britain's competition watchdog announced a probe into alleged information sharing amid broader concerns over the sector, while Zealand Pharma surged after a major mid-stage trial outcome for its fatty liver treatment.

The pan-European Stoxx 600 index was down 0.25% at 496.01, with all major bourses lower. Investors will have one eye on the US Personal Consumption Expenditures index - seen as the Federal Reserve's preferred measure of inflation - which is out on Thursday.

"A hotter than expected number could well put the cat among the pigeons, as was the case recently when a strong CPI number sparked a sell-off in equities," said Interactive Investor head of markets Richard Hunter.

"The latest reading will also give some clues as to whether inflation is remaining sticky as some had feared, especially given a service sector release on Friday which revealed that input prices had risen to a high not seen in almost a year."

In equity news, shares in British housebuilding stocks were all lower on the back of the probe from the Competition and Markets Authority. Persimmon, Bellway and Taylor Wimpey were among those affected.

Zealand Pharma was up 31% after an experimental drug it is developing with Boehringer Ingelheim yielded "groundbreaking" mid-stage trial results in the treatment of fatty liver.

Bank of Ireland slumped on a weaker-than-expected outlook, despite annual pre-tax profit rising by 92% in 2023 to just under €2bn (£1.7bn).

Shares in Bunzl fell as the distribution specialist Bunzl said it expected a slight fall in operating margin this year after posting a 10% rise in annual profits for 2023.

Reporting by Frank Prenesti for Sharecast.com