Europe open: Shares down ahead of Fed; Kering warning hits luxury sector

20th Mar 2024 08:09

(Sharecast News) - European shares fell slightly at the open on Wednesday as investors awaited the outcome of the Federal Reserve's policy meeting for more clues when the central bank might cut US rates later this year, while shares in luxury goods were down on a sales warning from Gucci owner Kering.

The benchmark Stoxx 600 index was down 0.24% at 504.04 in early trade.

Fed policy makers are likely to hold rates steady after recent inflation data came in hotter than expected, cooling market optimism for early cuts.

In economic news, UK inflation fell further than expected to 3.4% - its lowest level since late 2021. While in Germany producer prices fell 4.1% compared with expectations of a 3.8% decline.

In equity news , Kering warned of weaker Asia sales at its famed Gucci label. The news hit other shares of posh goods makers such as LVMH, Hugo Boss, Hermes, Richemont, Burberry and Christian Dior.

Swiss contract drug manufacturer Lonza gained after it agreed to buy Roche's Genentech manufacturing facility in California for $1.2bn.

Prudential was higher after the insurer reported an 8% rise in its annual profits as policy sales in Asia and Africa drove revenue.

Reporting by Frank Prenesti for Sharecast.com