European shares pull back from highest level since January

By: |
London | September 06, 2016 10:07 PM

European shares fell on Tuesday, dropping back from their highest levels since January, hit by weak U.S. data and a slump in France's Ingenico Group, which led Europe's tech sector lower

asain share marketEuropean shares fell on Tuesday, dropping back from their highest levels since January, hit by weak U.S. data and a slump in France’s Ingenico Group, which led Europe’s tech sector lower. (Reuters)

European shares fell on Tuesday, dropping back from their highest levels since January, hit by weak U.S. data and a slump in France’s Ingenico Group, which led Europe’s tech sector lower.

The pan-European STOXX 600 index fell 0.3 percent, after reaching its highest level since January in the previous session.

The market fell away in afternoon trade after the U.S. ISM services index dropped by the most since the financial crisis.

The dollar fell against the euro, hitting exporters, as the chances of a U.S. rate increase in September receded further.

The growth-sensitive banking sector fell the most, losing 1.7 percent. Banks have been under pressure, their profitability undermined by low interest rates.

The oil and gas sector dropped 0.9 percent, the next biggest decline, as Brent crude slipped below $47 a barrel. Oil prices dropped as hopes faded for imminent action to reduce a global supply glut.

“(The fall in oil) comes less than 24 hours after the black stuff has surged on news of an agreement between Russia and Saudi Arabia to stabilise the oil market,” said Connor Campbell, financials analyst at Spreadex.

“Investors (are) apparently less convinced than they were yesterday about the likelihood of this leading to any concrete action.”

Underscoring investor skittishness and low tolerance for earnings disappointments, French payments firm Ingenico Group plummeted 13.6 percent in heavy volume, after cutting its full-year targets following a “sudden and significant decline” in U.S. sales.

“Ingenico has adjusted its guidance for H2 2016 due to the rapid and temporary market decline in the U.S. caused by the change in EMV rules, and persistently difficult conditions in Brazil,” Richard-Maxime Beaudoux, analyst at Bryan, Garnier & Co, said in a note.

Dutch fertilizer group OCI also dropped, down 6.9 percent after reporting its first half results.

Germany’s blue-chip DAX ended in positive territory, helped by a jump in Fresenius SE. The medical company was up 6.4 percent after it said that it was buying Spain’s biggest private hospital chain, Quironsalud, for 5.76 billion euros ($6.42 billion).

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1A Poetic Moment: Hindi poetry witnessing a huge rise in popularity
2How to use Ethereum founder’s $1 trillion cryptocurrency donation in a wary India
3Gold sales on Akshaya Tritiya slammed once again by Coronavirus