European shares slipped on Thursday on investor caution ahead of crucial global economic data and the first round of French elections, while retailer H&M sank after missing quarterly profit forecasts.
The pan-European STOXX 600 closed 0.4% lower, extending losses for the third straight sessions.
Retail stocks led sectoral declines with a 1.9% drop as H&M, the world’s second-biggest fashion retailer, plunged 12.9% after missing quarterly earnings forecasts and predicting a drop in June sales.
“H&M repeats the goal of an operating margin of over 10% for 2024 and beyond. However, management warns that the conditions for achieving the goal this year have become more challenging,” said Magnus Raman, an analyst at Kepler Cheuvreux.
Sweden’s benchmark index slipped 0.2%.
Separately, its central bank, Riksbank, held its key interest rate at 3.75% as expected and indicated rates could ease further this year if inflation prospects remained the same.
European stock markets diverge at open
Basic resources lost nearly 0.9%, with miner Anglo American falling 1.5% after Berenberg cut the stock’s rating to “sell” from “hold”, citing concerns over the company’s new strategic plans.
GSK fell 4.5% a day after the U.S. CDC narrowed its usage recommendation for all respiratory syncytial virus (RSV) vaccines and held off on recommending their use for people under 60.
Personal and household goods fell 1.3%, led by 6.4% fall in Burberry as the British retailer’s shares traded ex-dividend.
On the bright side, DS Smith jumped 15.6% to the top of the benchmark index after Brazilian pulpmaker Suzano terminated buyout talks with International Paper. The British paper and packaging firm had agreed in April to be bought by International Paper.
Kering added 4.7% after BofA Global Research upgraded the French luxury goods company to “buy” from “underperform.”
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