European stocks fell on Tuesday after inflation figures from France and Spain came in hotter than expected for February, with price rises picking up pace both on an annual and sequential basis.
The inflation rate in France rose to 7.2 percent in February year-on-year, up from 7.0 percent in January as a result of rising food prices, preliminary data showed.
Spanish consumer price inflation increased an annual 6.1 percent in February, accelerating from 5.9 percent during the 12 months to January.
Christine Lagarde, President of the European Central Bank (ECB), said in an interview that the central bank is data dependent and will decide on rate hikes later after a 50 basis points hike in March.
The pan-European STOXX 600 slipped 0.3 percent to 461.09 after closing 1.1 percent higher on Monday.
The German DAX, France’s CAC 40 index and the U.K.’s FTSE 100 were down between 0.3 percent and half a percent.
The British pound held onto Monday’s gains after Prime Minister Rishi Sunak signed a new trade deal with the European Union designed to remedy problems caused by the Northern Ireland Protocol.
Credit Suisse dropped 1.6 percent. According to the Swiss financial watchdog FINMA, the lender has “seriously breached its supervisory obligations” in the context of its business relationship with financier Lex Greensill and his companies.
Adecco Group was down nearly 2 percent. The provider of human resources solutions reported that its fourth-quarter net income was 65 million euros, down 65 percent from last year’s 184 million euros.
British online grocer Ocado plunged more than 9 percent after posting a pre-tax loss of £501 million for the year to 31 December 2022.
Likewise, building materials giant Travis Perkins fell nearly 4 percent after posting disappointing annual earnings.
Serco Group, a provider of public services, jumped 4.2 percent after reporting a rise in earnings for 2022, amidst an increase in revenue.
German pharmaceutical and life sciences major Bayer Group plunged 4.2 percent after its fourth-quarter net income dropped 47.4 percent to 611 million euros from 1.16 billion euros a year ago.
BayWa AG shares gained over 2 percent after the operator in the agriculture, building materials and energy sectors reported significantly higher earnings and revenues in its fiscal 2022.
Aixtron AG, a technology firm, gained more than 10 percent after posting improved annual earnings, reflecting an increase in revenue, driven by higher order intake.
Business News
European Shares Slip Into Red On Inflation Worries
2023-02-28 09:39:16
