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Business News›Markets›Stocks›News›European shares slip but set for weekly gains;
Mercedes drops



THE ECONOMIC TIMES DAILY NEWSPAPER IS AVAILABLE ONLINE NOW.

Read Today's Paper


EUROPEAN SHARES SLIP BUT SET FOR WEEKLY GAINS; MERCEDES DROPS

SECTIONS
European shares slip but set for weekly gains; Mercedes drops
ReutersLast Updated: Sep 20, 2024, 02:45:00 PM IST
Synopsis


AUTOMOBILE SHARES LED SECTORAL LOSSES WITH A 2.9% FALL, HURT BY A 7.6% DROP IN
MERCEDES-BENZ AFTER THE CARMAKER CUT ITS FULL-YEAR PROFIT MARGIN FOR THE SECOND
TIME IN LESS THAN TWO MONTHS, AS OVERALL SALES VOLUME FELL IN CHINA.

AP
European shares slipped on Friday after a rally in the previous session spurred
by the U.S. Federal Reserve's outsized interest rate cut, while shares of
Mercedes were set for their worst day in 15 months after the automaker cut its
core profit outlook.

The pan-European STOXX 600 index fell 0.4% to 519.76 points as of 0805 GMT but
was on track for a second straight week of gains.


    
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All major European markets were trading lower, except Spain's that edged up
0.1%.

Automobile shares led sectoral losses with a 2.9% fall, hurt by a 7.6% drop in
Mercedes-Benz after the carmaker cut its full-year profit margin for the second
time in less than two months, as overall sales volume fell in China.



Mercedes also dragged the German benchmark index, which declined 0.8%. German
producer prices fell less than expected in August, decreasing by 0.8% on the
year versus expectations of a 1% decline.


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Europe's luxury goods sector slid more than 2% after Jefferies said it does not
see appreciable improvement for the luxury market in the second half of the
year.



Technology shares were down 1.1%, while personal goods shares dropped 1.5%.



Britain's FTSE 100 declined 0.5%, after a survey showed consumer confidence
dropped sharply to a six-month low.

"Consumers were less confident about their own personal financial position in
September compared to August, and they reported that they are less likely to
make a large purchase, compared to the previous month," said Kathleen Brooks,
research director for XTB.

"Worryingly for the government, consumers' view of the economic outlook also
deteriorated sharply in September."

British retail sales rose by a stronger-than-expected 1% in August, compared
with forecast of a 0.4% monthly rise in sales volumes from July, boosting the
pound.

Investors now shift focus to euro zone's consumer confidence data for September,
due at 1400 GMT, for more clues on the health of the region's economy.

Among other movers, Novo Nordisk advanced 0.5% after the European Medicines
Agency backed the use of the Danish drugmaker's popular drug Wegovy to help ease
heart failure in people with obesity.

UK's Burberry was down 4.6% as Jefferies cut rating on the stock to
"underperform" from "hold" and lowered the target price to 490p from 800p.





    
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