BRUSSELS, Feb 3 — European stocks slipped today, as investors fretted about possible interest rate hikes and monetary policy tightening ahead of key central bank decisions later in the day amid broadening inflationary pressures.
The pan-European STOXX 600 fell 0.3 per cent, with defensive sectors including industrials and healthcare , as well as technology, leading the decline.
Euro zone inflation rose to a record high last month, accelerating to 5.1 per cent in January from 5 per cent in December, more than twice the ECB’s 2 per cent target, data showed yesterday.
Europe’s central bank is likely to stand pat on policy but may have to acknowledge that inflation could stay high for longer, which may be taken as a hint at a faster exit from stimulus.
Swiss drugmaker Roche skidded 3 per cent after saying sales growth would slow this year as it braces for less demand for its Covid-19 medicines and diagnostics.
Publicis Groupe, the world’s third-biggest advertising agency, added 1.4 per cent to top France’s blue-chip index after forecasting organic sales growth of 4 per cent to 5 per cent this year, and as its 2021 earnings exceeded pre-pandemic levels to reach new records.
Wind turbine maker Siemens Gamesa dropped 0.5 per cent after confirming a gloomy outlook for a potentially negative full-year profit margin, hours after naming a new chief executive to try to revive its fortunes.
Sweden’s Skanska climbed 5.0 per cent after it posted quarterly profit above market expectations, and said market activity in construction had picked up gradually during the year. — Reuters