European shares close lower ahead of corporate earnings
written by Bella PalmerThe continent-wide STOXX 600 slid 0.6 per cent, with the real estate sector leading with a near 2 per cent decline, while energy stocks led gains as oil prices stabilised after a 7 per cent decline last week
European shares ended Monday's choppy session in the red ahead of a series of corporate earnings, although stabilising oil prices buoyed the energy sector.
The continent-wide STOXX 600 slid 0.6 per cent, with the real estate sector leading with a near 2 per cent decline, while energy stocks led gains as oil prices stabilised after a 7 per cent decline last week.
Bourses in top markets Germany, France, Italy and Spain ended down between 0.6 per cent and 1 per cent.
The STOXX index had closed higher last week, on the back of a rise the week before as well, after the ECB cut its interest rate on Thursday.
Lithuanian central bank governor Gediminas Simkus said on Monday the ECB may need to reduce it below the "natural" level if a drop in inflation became entrenched.
Meanwhile, all eyes are on Deutsche Bank, Lloyds and Barclays who will start earnings reporting for the heavily weighted financials sector this week.
Russ Mould, investment director at AJ Bell, said markets would keep an eye on loan impairments which had seen a relative increase among U.S. banks.
German software giant SAP, which comprises 15 per cent of the country's benchmark DAX index will further set the tone for tech stocks when it reports third-quarter earnings later on Monday.
Just by way of market cap, SAP's results will be pored over with unusual amounts of attention and after ASML's disappointment people, will be looking to another megacap for some reassurance, Mould added.
Lacklustre results from the chip equipment maker had sparked a rout in semiconductor stocks globally last week.
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