{"id":52850,"date":"2024-11-15T09:48:16","date_gmt":"2024-11-15T09:48:16","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2024\/11\/15\/european-shares-slide-as-powell-signals-careful-approach-to-rate-cuts\/"},"modified":"2024-11-15T09:48:16","modified_gmt":"2024-11-15T09:48:16","slug":"european-shares-slide-as-powell-signals-careful-approach-to-rate-cuts","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2024\/11\/15\/european-shares-slide-as-powell-signals-careful-approach-to-rate-cuts\/","title":{"rendered":"European Shares Slide As Powell Signals Careful Approach To Rate Cuts"},"content":{"rendered":"
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European stocks declined on Friday as Federal Reserve Chair Jerome Powell signaled a cautious approach on rate cuts and mixed Chinese data stoked concerns about slowing demand in the country. <\/p>\n

Powell said the U.S. central bank does not need to rush to lower interest rates and can approach decisions carefully, given persistent inflationary pressures. <\/p>\n

Data showed earlier today that China’s industrial output expanded at a slower-than-anticipated 5.3 percent in October, while retail sales jumped an annual 4.8 percent to surpass expectations boosted by a week-long holiday and the annual Singles’ Day shopping festival.<\/p>\n

Property investment fell 10.3 percent year-on-year in January-October and fixed asset investment growth in the first ten months of 2024 came in below expectations, keeping alive calls for Beijing to unveil more stimulus.<\/p>\n

Closer home, Destatis reported that Germany’s wholesale prices continued to decline in October, though at a slower pace.<\/p>\n

German wholesale prices decreased 0.8 percent year-on-year in October, slower than the 1.1 percent drop in September. <\/p>\n

Wholesale prices have been falling since May 2023, and the latest drop was the weakest in three months.<\/p>\n

The British pound hovered near a four-month low after data showed Britain’s economy<\/span> contracted unexpectedly in September and growth slowed to a crawl over the third quarter.<\/p>\n

GDP grew 0.1 percent sequentially, following growth of 0.5 percent in the second quarter. That was also weaker than the forecast of 0.2 percent.<\/p>\n

In September, GDP edged down 0.1 percent, in contrast to the 0.2 percent expansion in August.<\/p>\n

The pan-European STOXX 600 dropped half a percent to 504.77 and was on track for its fourth successive weekly drop. <\/p>\n

The German DAX slipped 0.3 percent, France’s CAC 40 eased 0.2 percent and the U.K.’s FTSE 100 was little changed with a negative bias. <\/p>\n

Vaccine makers were coming under selling pressure, with GSK and Sanofi falling 2-3 percent, after U.S. President-elect Donald Trump tapped anti-vaccine activist and conspiracy theorist Robert F. Kennedy as his secretary of health<\/span>.<\/p>\n

Danish biotech Bavarian Nordic plunged 16 percent after announcing its interim results for the first nine months of 2024.<\/p>\n

Generali Group shares were up 5 percent. The Italian insurer beat estimates with nine-month profits, despite a 930 million euro ($980.22 million) hit from natural disasters.<\/p>\n

Dutch insurer Aegon added 2 percent after launching a share buyback worth 150 million euros.<\/p>\n

Chipmaker ASML tumbled 3 percent after U.S. firm Applied Materials reported fiscal fourth-quarter earnings that missed analysts’ expectations.<\/p>\n

Evotec SE shares jumped 20 percent after Halozyme Therapeutics has put forth a non-binding proposal to acquire the German drug developer Evotec for about 2 billion euros ($2.10 billion). <\/p>\n<\/p>\n<\/div>\n