European shares dip on disappointing earnings

European shares declined on Monday following a series of disappointing company updates, exacerbating investor caution already heightened by the assassination attempt on US presidential candidate Donald Trump.

The STOXX 600 index fell by 0.1 per cent as of 0844 GMT, ending a three-session winning streak.

Burberry shares led the losses, plummeting 15.1 per cent after appointing former Michael Kors boss Joshua Schulman as its new CEO, replacing Jonathan Akeroyd after two years.

The company also warned about profit and scrapped its dividend. Data showing China’s economy grew slower than expected in the second quarter added to the cautious sentiment, with miners shedding 0.8 per cent due to declining base metal prices.

European equities had posted two consecutive weeks of gains by Friday, driven by expectations of rate cuts from the European Central Bank (ECB) and the US Federal Reserve.

The market’s focus is now on ECB President Christine Lagarde’s upcoming remarks ahead of the central bank’s policy meeting later this week.

Among other stocks, Nordea fell 4.2 per cent after reporting second-quarter operating earnings just below expectations. Despite analysts predicting a second-quarter loss for Deutsche Bank, its shares rose 0.3 per cent.

TomTom dropped 8.8 per cent after suspending its revenue target for 2025 and lowering this year’s expectations due to weak demand for new cars affecting its automotive location technology business.

Attribution: Reuters.