European shares began trading on Friday with a weaker position, with technology and real estate companies leading the decline. Investors eagerly awaited the release of euro zone inflation data to gain clarity on the future of interest rate cuts beyond June. Despite this, the pan-European STOXX 600 was still on track for its second consecutive weekly gain thanks to a strong corporate earnings season.
The focus was on the final euro zone inflation figures, which were released later in the day following a report from European Central Bank board member Isabel Schnabel cautioning against further rate cuts after a potential cut in June. The technology and real estate sectors were hit hardest, both down by 0.7%, while personal and household goods saw gains, with luxury group Richemont rising 6% following positive quarterly results. H&M also saw a 2.5% increase after being upgraded to “outperform” by RBC.
However, not all companies performed well as French re-insurer Scor experienced an 8.0% drop after reporting first-quarter results. Nibe, a Swedish heat-pump maker, lost 4.6% after being downgraded from Citigroup, and German utility E.ON fell by 4.1% after trading ex-dividend. Overall, the market was mixed with some sectors showing resilience while others faced significant challenges. (Reporting by Ankika Biswas in Bengaluru; Editing by Janane Venkatraman)