Stocks reduce losses after ECB maintains stable interest rates, but balance sheets weigh By Reuters

by time news

2023-10-26 19:21:11

© Reuters. Bolsa de Frankfurt 26/10/2023 REUTERS/Staff

By Amruta Khandekar and Shristi Achar A

(Reuters) – European shares pared early losses on Thursday after the European Central Bank (ECB) held interest rates steady as expected, while downbeat corporate earnings, including from Standard Chartered (LON:), weighed on the benchmark index.

The pan-European index closed down 0.48%, at 433.20 points, with car manufacturers leading the declines.

The ECB kept interest rates at 4%, halting an unprecedented streak of ten consecutive increases, and maintained its guidance, signaling a stable monetary policy ahead.

The healthcare sector performed poorly, with Straumann falling nearly 10% after Align Technology, the Swiss dental implant maker’s US peer, cut its full-year revenue forecast.

A series of downbeat earnings also weighed on the overall index, with shares in Siemens Energy (ETR:) down 35.5% to historic lows after the German company said it was in talks with the country’s government on state guarantees, after major setbacks in its wind division.

Standard Chartered shares fell 12.4%, as the bank’s pre-tax profit in the third quarter fell 33%. A drop in trading revenue pushed BNP Paribas (EPA:) down 2.6%.

In LONDON, the Financial Times index fell 0.81%, to 7,354.57 points.

In FRANKFURT, the index fell 1.08%, to 14,731.05 points.

In PARIS, the index lost 0.38%, to 6,888.96 points.

In MILAN, the index increased by 0.29%, to 27,507.90 points.

In MADRID, the index registered a drop of 0.24%, to 8,962.80 points.

In LISBON, the index increased by 2.23%, to 6,184.88 points.

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