European stocks were still lower on Wednesday following losses overnight in Asia and the US and nerves ahead of a European Central Bank meeting on Thursday which
The pan-European Stoxx 600 index was down fell 1.05% in early deals. All major regional bourses were lower. In the US, investors turned to tech stocks, propelling the Nasdaq index to new highs.
“Relatively unaffected by the vagaries of the return to normality due to the Delta variant, consumers continue to use technology regardless,” said Interactive Investor head of markets Richard Hunter.
“As such, big tech stocks are edging towards becoming the ‘new defensives’, as uncertainty abounds elsewhere. In addition, investors switched once more from value to growth, propelling the Nasdaq to a fresh record closing high.”
The ECB is expected to announce a cut in bond buying on Thursday, with forecasts of purchases under the Pandemic Emergency Purchase Programme falling to as low as €60bn a month from the current €80bn.
In equity news, shares in B&M European Value Retail topped the Stoxx with a rise of 6.77% after the company said it expected interim core earnings to be ahead of analysts’ forecasts on the back of stronger gross margins.
The owner of convenience retail stores said adjusted earnings before interest, taxes, depreciation and amortisation for the six months to September 25 to be £275m – £285m.
Swedish investment company EQT fell after a share placing deal. Car maker Stellantis dropped after Dongfeng Motor Hong Kong said it had sold shares in the carmaker for about €600m.
Shares in French drugmaker Sanofi slipped after it agreed to buy US biopharmaceutical company Kadmon Holdings in a $1.9bn deal.
British industrial technology company Smiths Group rose 3.8% after it agreed to sell its medical unit to US-based ICU Medical for $2.4bn.
Morrisons edged higher as it said it is in talks with the Takeover Panel about launching an auction process for the supermarket chain after Fortress Investment Group and Clayton Dubilier & Rice failed to declare their bids final.
Homewares retailer Dunelm also rose after it said 2022 full-year profits would be “modestly” ahead of expectations as it posted a strong rise in 2021 earnings, driven by online sales during the Covid pandemic.
