European stocks fall as markets tumble amid political uncertainty
Date
6/30/2024 5:16:55 AM
(MENAFN) European Stocks experienced a decline on Friday, relinquishing early gains, with the pan-European STOXX 600 index closing down by 0.2 percent. This marked the fourth consecutive session of losses, driven in part by a significant downturn in shares of L'Oréal, the French cosmetics giant. L'Oréal's stock fell by 3 percent after its CEO presented subdued growth expectations during an event hosted by J.P. Morgan. The personal and household goods sector, which includes L'Oréal, dropped by 1 percent, contributing to broader market losses.
The STOXX 600 index also suffered its first quarterly decline in three quarters, alongside monthly and weekly losses, primarily attributed to political uncertainties in France. The call for early parliamentary elections by President Emmanuel Macron earlier in the month heightened market jitters, particularly impacting France's benchmark CAC 40 index, which closed down by 0.7 percent and registered an overall quarterly loss of about 8.8 percent.
On a more positive note, the technology sector managed to gain ground, with the technology stocks index rising by 0.4 percent. This uptick followed significant gains in the Nasdaq index, dominated by technology stocks, fueled by inflation data that reinforced expectations of potential interest rate cuts by the US Federal Reserve in September. This sector resilience provided some counterbalance to the broader market downturn, reflecting investor optimism amidst economic uncertainties.
Overall, the European stock market's retreat highlighted the sensitivity to geopolitical developments and corporate performance, underscoring the challenges posed by ongoing political shifts in key European economies like France, while also showcasing the resilience of certain sectors amid global economic dynamics.
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