(Reuters) -European shares slipped on Tuesday, dragged by a drop in rate-sensitive banks and insurance sector stocks, as investors turned cautious ahead of a highly anticipated monetary policy verdict by the U.S. Federal Reserve on Wednesday.
The pan-European STOXX 600 dropped 0.15% to 555.79 points, as of 0706 GMT, led by declines in banks and insurance stocks, which were down about 1% each.
The Fed will kick off its two-day policy meeting later in the day, with markets pricing in a 25-basis-point interest rate cut announcement on Wednesday, potentially its first dovish policy verdict this year following recent data suggesting a softening U.S. job market.
Among individual stocks, Schindler fell 1.7% after an investor sold shares of the lift maker through an accelerated bookbuilding process at about an 8.4% discount to the stock’s closing value in the previous session.
L’Oreal lost 2% after Jefferies downgraded the French cosmetics giant’s stock rating to “Underperform” from “Hold” earlier.
Ferrari, on the other hand, gained 2.6% after Berenberg started coverage of the luxury sports-car maker with a “Buy” rating, highlighting its strong brand heritage, robust pricing power, and durable returns on capital.
(Reporting by Tristan Veyet in Gdansk, Johann M Cherian in Bengaluru, editing by Rashmi Aich)
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