On Wednesday, European shares experienced a slight dip, with the utility and financial sectors facing the most significant declines.
Investors were carefully assessing economic data and corporate earnings while anticipating statements from key central bank leaders later in the day.
The pan-European STOXX 600 index fell by 0.2% as of 0950 GMT, reaching an intraday low not seen in nearly a week.
Among the sectors, utilities stocks saw the most substantial declines, dropping by 1.2% to a one-week low.
E.ON, Europe’s largest energy networks operator, experienced a 1.8% decline in its stock price due to expectations of a severe hit to fourth-quarter profits in its retail division.
Insurance stocks also suffered, with a 0.7% loss, primarily driven by a 6.2% drop in Swiss Life Holding AG’s stock after concerns were raised about the insurer’s full-year outlook regarding real estate.
Investors eagerly awaited remarks from major central bank leaders, including U.S. Federal Reserve Chair Jerome Powell, European Central Bank President Christine Lagarde, and Bank of England Governor Andrew Bailey.
Patrick Armstrong, Chief Investment Officer at Plurimi Wealth, noted that the central banks would likely reiterate their commitment to monitor and act on inflation pressures if they grow, although he did not expect another rate hike from the Fed.
Meanwhile, an ECB survey revealed that eurozone consumers had increased their inflation expectations for the next 12 months to 4%, potentially posing a challenge for the central bank’s efforts to control prices. ECB Chief Economist Philip Lane acknowledged that progress in curbing underlying inflation was insufficient, and policymaker Gabriel Makhlouf expressed concerns about new vulnerabilities emerging.
On the earnings front, Ahold Delhaize, a supermarket group, saw a 7.4% drop in its stock price after reducing its 2023 earnings forecast and highlighting margin weakness in the United States.
ABN Amro slumped 8.7% in the STOXX 600 after third-quarter net interest income fell short of expectations.
In contrast, Vestas, a Danish wind turbine maker, saw an 8.2% increase in its stock price following better-than-expected third-quarter operating profits and revenue.
British retailer Marks & Spencer soared by 8.7% on the back of a much stronger-than-expected 75% rise in first-half profit.
Commerzbank, a German bank, also experienced a 2.3% increase as net profit more than tripled in the third quarter, surpassing expectations.
Data from LSEG indicated that 55.3% of STOXX 600 companies that had reported third-quarter results exceeded earnings expectations, slightly above the typical rate of 54%.
Additionally, Portugal’s PSI Index continued to decline, falling by 0.2% after a brief recovery and a 2.5% slide on Tuesday following the unexpected resignation of Prime Minister Antonio Costa.