{"id":51221,"date":"2024-10-03T10:27:03","date_gmt":"2024-10-03T10:27:03","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2024\/10\/03\/european-shares-retreat-as-business-activity-contracts-in-september\/"},"modified":"2024-10-03T10:27:03","modified_gmt":"2024-10-03T10:27:03","slug":"european-shares-retreat-as-business-activity-contracts-in-september","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2024\/10\/03\/european-shares-retreat-as-business-activity-contracts-in-september\/","title":{"rendered":"European Shares Retreat As Business Activity Contracts In September"},"content":{"rendered":"
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European stocks were broadly lower on Thursday after a survey showed the euro area private sector shrank for the first time in seven months in September.<\/p>\n

The final HCOB composite output index fell to 49.6 in September from a three-month high of 51.0 in August – bolstering expectations for an interest rate cut at the European Central Bank’s meeting on Oct 17.<\/p>\n

Elsewhere, U.K. business<\/span> activity growth eased to a three-month low in September. <\/p>\n

In France, President Emmanuel Macron endorsed a temporary tax on the country’s largest companies to get the public finances back on track.<\/p>\n

Investors also fretted about the possibility of a wider war in the Middle East after Iran launched its largest-ever attack on the country. <\/p>\n

The pan European STOXX 600 fell 0.7 percent to 517.71 after ending flat with a positive bias on Wednesday. <\/p>\n

The German DAX dipped 0.7 percent and France’s CAC 40 shed 0.8 percent while the U.K.’s FTSE 100 was up 0.3 percent. <\/p>\n

The British pound weakened after Bank of England Governor Andrew Bailey reportedly hinted at ‘more aggressive’ path for cutting interest rates if inflation news stays positive.<\/p>\n

In a wide-ranging interview with the Guardian, Bailey held out the prospect of the Bank becoming a “bit more aggressive” with interest-rate cuts.<\/p>\n

In corporate news, Ericsson fell about 1 percent on reports that the telecom supplier is considering moving and leaving Kista.<\/p>\n

Telecom Italia rallied 2.3 percent after Italy made a new offer for its Sparkle submarine cable unit.<\/p>\n

Stellantis NV slumped 4.2 percent after output dropped at all six of its factories in Italy in the first nine months.<\/p>\n

British Land Company shares were down 0.7 percent in London. The property firm said it has acquired a portfolio of seven retail parks for 441 million pounds.<\/p>\n

Tesco jumped 3.1 percent. The supermarket group lifted its annual profit forecast after profit and revenue increased in the first six months of the financial year.<\/p>\n

Telecom Plus gained 0.7 percent as it reported continued robust growth in customer numbers in a first-half update.<\/p>\n

France’s Alstom rallied 2.2 percent after receiving an order from Proxima for 12 Avelia Horizon very high-speed trains.<\/p>\n

German software maker SAP SE dropped 1.3 percent after a U.S. price-fixing probe into the company.<\/p>\n

Lufthansa was little changed. The flag carrier said that it is resuming certain flights to destinations in the Middle East but will not use Iranian and Iraqi airspace as a precautionary measure due to the ongoing conflict, until further notice.<\/p>\n

LANXESS tumbled nearly 3 percent. The specialty chemicals company has signed a contract to sell its Urethane Systems business to Japanese UBE Corporation.<\/p>\n

Residential landlord Vonovia fell 1.6 percent after saying it expects a total liquidity inflow of around 4 billion euros for 2024, same as the previous year’s level. <\/p>\n<\/p>\n<\/div>\n