Latest News

European shares fall from record highs ahead of US inflation data

European shares fall from record highs ahead of US inflation data
European shares fall from record highs ahead of US inflation data

Investors sifted corporate updates in anticipation of U.S. Inflation?data.

By 0940 GMT, the?STOXX600 was flat. The?STOXX 600 was flat at 0940 GMT.

Sika, the Swiss manufacturer of construction chemicals, reported on Tuesday a drop in sales for the full year of 4.8%. This dragged its shares down by 6.7% and to their lowest level since November.

British homebuilder Persimmon has also outlined a cautious outlook 2026, after reporting that it sold more homes last year than expected.

The updates will guide the sentiment as the?markets prepare for an important inflation report in the U.S. where the policy outlook is clouded by the?clash? between Federal Reserve chair Jerome Powell, and President Donald Trump.

ORSTED JUMPS - UBS IN FOCUS

Shares of Danish offshore developer Orsted rose?5.5%, reaching a new high in a month after a U.S. federal judge allowed it to resume work on the?Rhode Island Project that President Trump's Administration had halted last month along with four other project.

In a note, Jefferies analysts stated that "the injunction represents a solid short-term win which offsets any near-term losses."

They said, however, that this "doesn't alleviate the longer-term concern over whether or not the offshore wind farm can be completed and eventually put into service."

The?UBS Group stock rose 0.7%. Financial Times reports that Sergio Ermotti who was CEO of the Swiss bank giant Credit Suisse and led it through its integration with former rival Credit Suisse is planning to retire in April 2027.

The?DAX in Germany was flat a day after achieving its longest winning streak, dating back to 2024.

Diageo's shares rose by 1% on their way to a?fourth consecutive day of gains. Bloomberg News reported the company is weighing its options for its China assets. This includes a possible sale.

Airbus shares increased marginally after the largest planemaker in the world reported that deliveries were up 4% over last year.

Analysts say that despite the STOXX 600's muted movements, the fundamentals of 2026 remain strong.

Shaan Raithatha is a senior economist with Vanguard's Investment Strategy Group. He said that "value stocks will outperform the growth stocks in the medium-term." (Reporting and editing by Nivedita Battacharjee, Vijay Kishore and Niket Nishant from Bengaluru)

(source: Reuters)