AMSTERDAM/LONDON: European stocks eased marginally from all-time highs on Tuesday, as investors sold economically sensitive sectors following hotter than expected US inflation, but some upbeat earnings capped losses.
The pan-European STOXX 600 index ended flat after hitting a record high in early trading. Banks, auto and parts and oil and gas sectors were among the biggest decliners, down between 0.5% and 1.2%, while gains in some defensive stocks and technology shares countered losses.
Yields on European bonds hit three-month lows ahead of next week’s ECB’s meeting, taking euro zone banks down 1.5%. Spain’s banks-heavy benchmark index dropped 1.4%, significantly underperforming regional peers which ended little changed.
British lenders gave back gains made after the Bank of England scrapped pandemic-era restrictions on dividends.
Among individual stocks, Finnish telecom equipment maker Nokia jumped 8% after it said it planned to raise its full-year outlook.
Swiss watchmaker Swatch Group rose 0.9% as it returned to profit in the first six months of 2021 and its sales jumped more than 50%.
Bumper earnings from major US banks JPMorgan and Goldman Sachs also helped sentiment. The European reporting season will kick into high gear later this month, with analysts expecting second-quarter profit for STOXX 600 companies to more than double from a year ago, as per Refinitiv IBES data.
Norwegian chipmaker Nordic Semiconductor surged 6% as its quarterly profit doubled.
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