By Amruta Khandekar and Ankika Biswas
(Reuters) – European stocks fell on Tuesday after a series of bearish corporate earnings soured sentiment as investors awaited crucial economic data from the United States to gain more clarity on the Federal Reserve’s policy plans.
The pan-European STOXX 600 index closed down 0.33% at 465.41 points.
SBB fell 24.2% and extended losses to a five-year low after the Swedish property company said on Monday it would suspend dividend payments and rule out a planned share issue following a credit rating cut.
The movement, combined with falls between 3.4% and 5.3% in the pairs Castellum, Wallenstam and Fabege, made the real estate sector in Europe record low of 2.9%.
The STOXX 600 has held up this year, up 9.4%, but has come under pressure in recent days as the European Central Bank remained steadfast in its commitment to taming price pressures and as investors nervously await US inflation data. .
ECB member Peter Kazimir pointed out that the central bank may need to raise interest rates for longer than anticipated, and September may be the first time to judge whether the tightening of monetary policy so far has been effective.
US consumer and producer price readings, due later this week, will be assessed for any signs that inflation has cooled enough for the Fed to consider easing financial conditions any time soon.
Investors also awaited news on the US debt ceiling at a late-afternoon meeting between US President Joe Biden and top Republican lawmakers, with the possibility of an unprecedented default in three weeks if no deal is reached. .
In LONDON, the Financial Times index fell 0.18% to 7,764.09 points.
In FRANKFURT, the DAX index was up 0.02% to 15,955.48 points.
In PARIS, the CAC-40 index lost 0.59% to 7,397.17 points.
In MILAN, the Ftse/Mib index lost 0.16% to 27,383.53 points.
In MADRID, the Ibex-35 index recorded a drop of 0.31%, at 9,183.20 points.
In LISBON, the PSI20 index lost 0.36% to 6,133.24 points.
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