European shares dip ahead of ECB policy decision By Reuters

By Johann M Cherian and Ozan Ergenay

(Reuters) – European shares slipped on Thursday as investors avoided big bets ahead of a monetary policy decision by the European Central Bank and remarks by ECB’s Christine Lagarde on the outlook for interest rate cuts.

The pan-European lost 0.3%, as of 0906 GMT. The telecommunications sector led sectoral declines, weighed by a 5.5% drop in Deutsche Telekom (OTC:) as the company traded ex-dividend.

All eyes will be on ECB’s decision due at 1215 GMT, where the central bank is likely to stand pat on interest rates, but focus will be on any hints that a rate cut could be delivered in June, given easing price pressures and economic weakness.

Rate-sensitive sectors such as real estate and banks dipped 0.6% and 1.0% respectively.

“The ECB has clearly signalled that it wants to see more evidence of moderating wage growth before it is ready to cut interest rates,” said Joost van Leenders, senior investment strategist at Van Lanschot Kempen.

Following a broadly lacklustre week, the STOXX 600 hit a one-month low in the previous session after a hot U.S. inflation report sparked concerns on the timeline for the Federal Reserve’s first interest rate cut and raising expectations that the ECB could lower rates before its U.S. counterpart.

Societe Generale (OTC:)’s shares topped the French blue-chip index and were up 2.5% after the lender said it has agreed to sell a professional equipment financing business to rival BPCE for 1.1 billion euros ($1.18 billion).

Limiting declines, the oil and gas sector climbed 1.2%, tracking an uptick in crude prices.

Idorsia postponed its 2023 and first quarter results publication, sending the Swiss biotech firm’s shares down 19.2%.

AstraZeneca (NASDAQ:) rose 1.5% and was among the top gainers on UK’s after the drugmaker said it plans to increase its annual dividend by 7% for 2024.

Volvo (OTC:) fell 3.4% after brokerage Citigroup downgraded the stock to “neutral” from “buy”.

(This story has been corrected to fix the company name and instrument code to Volvo, in paragraph 11)

By Johann M Cherian and Ozan Ergenay

(Reuters) – European shares slipped on Thursday as investors avoided big bets ahead of a monetary policy decision by the European Central Bank and remarks by ECB’s Christine Lagarde on the outlook for interest rate cuts.

The pan-European lost 0.3%, as of 0906 GMT. The telecommunications sector led sectoral declines, weighed by a 5.5% drop in Deutsche Telekom (OTC:) as the company traded ex-dividend.

All eyes will be on ECB’s decision due at 1215 GMT, where the central bank is likely to stand pat on interest rates, but focus will be on any hints that a rate cut could be delivered in June, given easing price pressures and economic weakness.

Rate-sensitive sectors such as real estate and banks dipped 0.6% and 1.0% respectively.

“The ECB has clearly signalled that it wants to see more evidence of moderating wage growth before it is ready to cut interest rates,” said Joost van Leenders, senior investment strategist at Van Lanschot Kempen.

Following a broadly lacklustre week, the STOXX 600 hit a one-month low in the previous session after a hot U.S. inflation report sparked concerns on the timeline for the Federal Reserve’s first interest rate cut and raising expectations that the ECB could lower rates before its U.S. counterpart.

Societe Generale (OTC:)’s shares topped the French blue-chip index and were up 2.5% after the lender said it has agreed to sell a professional equipment financing business to rival BPCE for 1.1 billion euros ($1.18 billion).

Limiting declines, the oil and gas sector climbed 1.2%, tracking an uptick in crude prices.

Idorsia postponed its 2023 and first quarter results publication, sending the Swiss biotech firm’s shares down 19.2%.

AstraZeneca (NASDAQ:) rose 1.5% and was among the top gainers on UK’s after the drugmaker said it plans to increase its annual dividend by 7% for 2024.

Volvo (OTC:) fell 3.4% after brokerage Citigroup downgraded the stock to “neutral” from “buy”.

(This story has been corrected to fix the company name and instrument code to Volvo, in paragraph 11)