Europe midday: Shares stay in the red; Dr Martens stumbles

16th Apr 2024 11:15

(Sharecast News) - European shares were sharply lower on Tuesday after hefty losses on Wall Street as investors waited for Israel's response to a missile attack by Iran on Saturday.

The pan-regional Stoxx 600 index was down 1.42% at 498.77 with all major markets down. US and Asia markets led the downward trend overnight, with investors caught on the hop by news that electric car maker Tesla was axing 10% of its workforce.

"Sentiment is shaky at best right now with heightened geopolitical tensions in the Middle East coming alongside increased concerns that the Federal Reserve may opt to maintain interest rates at the current levels for some time yet, said Scope Markets analyst Joshua Mahony.

"Overnight data out of China saw the surprisingly strong GDP reading of 5.3% provide the one saving grace amid sharp declines in retail sales and industrial production."

In economic news, the UK unemployment rate in the three months to February rose to 4.2%, while wages also rose 6%, making the likelihood of an early interest rate cut by the Bank of England more remote.

Investor morale in Germany improved by more than expected this month, a closely-watched survey showed on Tuesday.

The latest ZEW Indicator of Economic Sentiment came in at 42.9, a rise of 11.2 points on March and well ahead of analyst expectations, for 35.1.

In equity news, Ericsson shares were up after the company released first quarter results.

Naturgy stock powered ahead on a report that Abu Dhabi's TAQA is in talks with Spanish holding vehicle Criteria over a potential takeover of the Spanish energy company.

Dr Martens shares slumped by a third after issuing another profit warning and announcing the departure of chief executive Kenny Wilson.

Global payments technology company Wise fell almost 8% despite saying it continued to enjoy a strong uptake for its services during the last quarter of its fiscal year.

British defence group Qinetiq after the company said global solutions continued to be impacted by difficult market conditions in the US and announced that finance director Carol Borg will step down.

Reporting by Frank Prenesti for Sharecast.com