By Pranav Kashyap
(Reuters) -European shares hit their lowest level in more than a month on Wednesday, as disappointing earnings reports dented risk sentiment, while investors parsed through a slew of economic data from across the region.
The pan-European STOXX 600 fell 0.7% to 514.37 points after touching its lowest level since Sept. 23 earlier in the session.
Luxury stocks, often traded as China proxies, were the biggest drag on the benchmark index. Both LVMH and L’Oreal slid nearly 2%, while Kering lost 3.1%. [.SS]
Technology sector shed 1.6%, dragged by Capgemini’s 7.5% drop after the French IT consulting group cut its 2024 revenue target.
Market participants also awaited a barrage of key economic data.
Euro zone’s flash preliminary GDP for the third quarter and consumer confidence data for October are due later in the day. The UK budget, scheduled for 1230 GMT, will be on top of investors’ radar.
“The main focus will be on how much additional borrowing there is, particularly given it was just over two years ago that the mini-budget under Liz Truss sent UK markets into turmoil,” Deutsche Bank analysts said in a note.
In results-driven moves, GSK lost 3.1% after it lowered its 2024 vaccine sales forecast.
ASM International (ASMI) gained 4.3% after the chip-making equipment supplier raised its 2025 forecast range.
UBS gained 1% after the bank posted robust third-quarter profit and almost doubled its forecasts.
Standard Chartered rose 3.5% after the lender’s quarterly profit topped market estimates.
Meanwhile, Germany’s economy grew stronger than expected in the third quarter, while the country’s unemployment rose more than expected in October.
Its benchmark DAX was down 0.5%.
Data showed the French economy expanded 0.4% in the third quarter. Its benchmark CAC 40 lost over 1%.
Spain’s inflation rate rose to 1.8% in October. Its economy grew faster than expected in the third quarter, while Italy’s economy stagnated.
Investors will also keep an eye out for comments from European Central Bank’s board member, Isabel Schnabel due later in the day.
Across the Atlantic, the neck-and-neck race between U.S. presidential candidates Kamala Harris and Donald Trump was also at the top of investors’ minds ahead of the Nov. 5 election.
Bitcoin stood just a whisker away from its peak of $73,803.25 as markets weighed the prospect of a victory for Trump, widely seen taking a more favourable stance towards digital assets.
(Reporting by Pranav Kashyap in Bengaluru; Editing by Eileen Soreng)
