Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

European stocks slip from recent highs, telecom deals in focus

09/07/2021 | 04:45am EDT

* KPN leads gains after Deutsche Telekom unit sale

* Meggitt tumbles as TransDigm drops bid

* Traders await ECB meeting on Thursday

Sept 7 (Reuters) - European stocks ended lower on Tuesday as caution kicked in ahead of a European Central Bank meeting later this week, while focus turned to a flurry of telecom deals led by Deutsche Telekom.

The pan-European STOXX 600 index slipped 0.5% after coming close to a record high in the previous session. Utilities , healthcare and chemical stocks were among the top decliners.

Spurring moves in telecoms, Deutsche Telekom struck a share-swap deal with SoftBank Group to increase its stake in U.S. unit T-Mobile. The stock fell slightly.

The company and Swedish telecoms operator Tele2 also agreed to sell their Dutch unit to private equity groups for an enterprise value of 5.1 billion euros ($6.05 billion).

Dutch peer KPN rose 4.1%, leading gains on the STOXX 600, while UK's BT fell 0.1% on news Deutsche Telekom is weighing options for its 12% stake in BT.

The wider telecoms index rose 0.1%.

Caution prevailed ahead of the ECB meeting on Thursday, with a recent surge in euro zone inflation and improving economic data driving bets of tighter monetary policy.

"It's believed that the ECB is discussing tapering their PEPP purchases. If it is, then investors will look for signs that they are going to compensate by making purchases through other schemes," said Andrea Cicione, head of strategy at TS Lombard.

"The reason they wouldn't want to get ahead of the Fed is because any hawkish remark by Lagarde or the ECB would cause even more strength in the euro, which would be negative for European growth."

The benchmark STOXX 600 has gained almost 19% so far this year, slightly lagging New York's S&P 500, as relatively high rates of vaccination brightened the recovery outlook, with many people returning to offices following sweeping restrictions last year.

Hopes of more economic stimulus for China and Japan, as well as growing views the U.S. Federal Reserve is likely to delay the start of tapering its asset purchases pushed world stocks to record highs earlier.

British engineering firm Meggitt fell 12.1%, and was the worst performer on the STOXX 600 after aerospace parts maker TransDigm bowed out of a $8.7 billion takeover battle for the firm.

The world's largest inter-dealer broker TP ICAP Group slumped 10.7% after reporting a lower half-year profit.

Upmarket fashion retailer Ted Baker climbed 0.2% as sales surged during the second quarter as customers returned to shops after months of coronavirus restrictions. (Reporting by Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta, Louise Heavens and Richard Chang)


ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
BT GROUP PLC -0.47% 136.9 Delayed Quote.3.36%
COMPAGNIE FINANCIÈRE RICHEMONT SA 1.64% 111.85 Delayed Quote.39.67%
DEUTSCHE TELEKOM AG -0.70% 16.394 Delayed Quote.9.62%
KERING 0.39% 646.1 Real-time Quote.8.70%
LVMH MOËT HENNESSY LOUIS VUITTON SE 1.15% 667.3 Real-time Quote.30.61%
MEGGITT PLC -0.27% 750 Delayed Quote.60.77%
ROYAL KPN N.V. -0.26% 2.721 Real-time Quote.9.41%
SOFTBANK GROUP CORP. 0.55% 6610 End-of-day quote.-17.97%
T-MOBILE US 0.02% 116.87 Delayed Quote.-13.33%
TED BAKER PLC -0.07% 133.4 Delayed Quote.14.90%
TELE2 AB -1.02% 121.9 Delayed Quote.12.25%
TP ICAP GROUP PLC -0.12% 162.1 Delayed Quote.-31.81%
Latest news "Economy & Forex"
01:34aHSBC surprises with 74% rise in Q3 profit and $2 billion buyback
RE
01:29aChina's state planner says will probe coal and energy price index providers
RE
01:29aChina will uphold world peace, Xi says on anniversary of return to U.N.
RE
01:24aTWIN PEAKS : Whether it's supply or demand, oil era heads for crunch time
RE
01:24aIT, FMCG stocks drag Indian shares down; ICICI Bank hits record high
RE
01:23aPhilippines sets cash grants for public transport drivers as fuel prices soar
RE
01:21aChina sells 88.5% of wheat offered at state reserves auction
RE
01:18aGold firms near key $1,800 level as dollar weakens
RE
01:10aUNICREDIT : Barclays raises target price to eur 11.6 from eur 9.5
RE
01:07aINTESA SANPAOLO SPA : Barclays raises target price to eur 3.1 from eur 2.8
RE
Latest news "Economy & Forex"