{"id":10941,"date":"2021-06-18T09:50:56","date_gmt":"2021-06-18T09:50:56","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2021\/06\/18\/european-shares-subdued-on-feds-hawkish-talk\/"},"modified":"2021-06-18T09:50:56","modified_gmt":"2021-06-18T09:50:56","slug":"european-shares-subdued-on-feds-hawkish-talk","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2021\/06\/18\/european-shares-subdued-on-feds-hawkish-talk\/","title":{"rendered":"European Shares Subdued On Fed’s Hawkish Talk"},"content":{"rendered":"
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European stocks were broadly lower on Friday, with a hawkish policy outlook from the U.S. Federal Reserve and signs of credit tightening in China weighing on markets<\/span>. <\/p>\n

The pan European Stoxx 600 slipped 0.1 percent to 458.84 after closing 0.1 percent lower on Thursday. <\/p>\n

The German DAX eased 0.2 percent and the U.K.’s FTSE 100 dropped half a percent while France’s CAC 40 index was up 0.2 percent.<\/p>\n

Banks underperformed as 10-year Treasury yields fell by nearly 3 bps to 1.475 percent, coming back to levels seen going into the Fed meeting earlier in the week. <\/p>\n

HSBC Holdings, Deutsche Bank, Credit Agricole and BNP Paribas dropped 1-2 percent. <\/p>\n

BP Plc fell 1.5 percent, Total SE gave up 1.9 percent and Royal Dutch Shell lost about 2 percent as oil extended losses for a second straight session on dollar strength.<\/p>\n

Miners Anglo American, Antofagasta and Glencore were modestly lower as copper headed for its biggest weekly loss since March 2020.<\/p>\n

Tesco, Britain’s biggest retailer, lost 2.5 percent after it reported a sharp slowdown in underlying U.K. sales growth in its first quarter.<\/p>\n

Inchcape shares jumped 3.8 percent after the automotive distributor delivered a better-than-expected performance in the first half and said full-year pre-tax profit will be “significantly ahead” of market consensus.<\/p>\n

Irish food company Kerry advanced 1.8 percent. The company has agreed to sell its Meats and Meals business<\/span> in the U.K. and Ireland to Pilgrim’s Pride for \u20ac819m.<\/p>\n

Danish rare disease company Orphazyme AS nosedived 62 percent after it failed to win support from the U.S. health<\/span> regulator for its arimoclomol drug.<\/p>\n

German chemical distribution company Brenntag AG advanced 1.7 percent after raising its operating EBITDA forecast for the 2021 financial year.<\/p>\n

In economic releases, the euro area current account surplus totaled EUR 23 billion in April versus EUR 18 billion surplus in the previous month, the European Central Bank reported. <\/p>\n

The visible trade surplus widened to EUR 27 billion from EUR 24 billion, while the surplus on services trade held steady at EUR 8 billion.<\/p>\n

U.K. retail sales dropped unexpectedly in May after a sharp growth in April when retail restrictions were eased, data from the Office for National Statistics revealed.<\/p>\n

Retail sales dropped 1.4 percent month-on-month in May, reversing a 9.2 percent rise in April and confounding expectations for an increase of 1.6 percent.<\/p>\n

On a yearly basis, the retail sales volume growth moderated to 24.6 percent in May from 42.4 percent a month ago. This was also slower than the expected expansion of 29 percent. <\/p>\n<\/p>\n

Market Analysis<\/p>\n<\/div>\n