European shares pause after rally, doubts linger over Iran peace deal
The technology sector was flat
Add BT as a preferred source
EUROPEAN shares slipped on Wednesday, pausing after a strong finish to the second quarter and amid caution over signs that peace talks between Iran and the United States hit a new stalemate.
The pan-European Stoxx 600 index slipped 0.3 per cent to 639.64 points by 0710 GMT after logging its strongest quarter since October 2020 in the previous session. The technology sector, which had been a key driver over the past three months, was flat, with chip equipment maker ASML down 1.1 per cent and IQE and Infineon trading marginally lower.
Schneider Electric lost 2.1 per cent after the AI equipment maker said it had signed an agreement to acquire Cognite Holding, a privately held provider of AI software and industrial data for US$3.1 billion in an all-cash deal. Focus will be on the European Central Bank's Sintra conference, where US Federal Reserve chair Kevin Warsh and ECB President Christine Lagarde are expected to speak later in the day.
Traders anticipate both major central banks to lift interest rates by at least 25 basis points each later this year, LSEG-compiled data showed.
Oil prices have fallen back to pre-Iran war levels, however, concerns are that price pressures will linger for some time. Among top movers, Primark owner Associated British Foods slipped 2.7 per cent after saying it still expects annual profit to be below the prior year's outcome, adding that the Middle East conflict impacted its European profit outlook.
Swedish defence equipment maker Saab gained 1.7 per cent after signing a contract to deliver 16 Gripen E fighter aircraft to Ukraine in a deal worth about 24.6 billion Swedish crowns (S$3.3 billion).
Elsewhere, Iran said it would not meet with top US envoys who flew to the region following an outbreak of hostilities, clouding the prospects for a lasting peace between the two countries. REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
TRENDING NOW
Malaysian tycoon Vincent Tan’s sell-downs point to pruning rather than an exit plan
OCBC rolls out AI-native banking, to hire 600 relationship managers in wealth push
Three Holland Village shophouses sold for S$70 million to Tat Lee Bank’s Goh family unit
The billion-dollar question Singapore Airlines shareholders should ask during its AGM
