European shares dip as lower commodity prices weigh (updated)

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19/07/2024 09:53

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        * 
      STOXX 600 down 0.6%, miners weigh
    

        * 
      Global cyber outage causes chaos
    

        * 
      Sartorius drops on annual forecast cut
    

  
 (Updated at 0834 GMT)
    By Shristi  Achar A and Pranav Kashyap
       July 19 (Reuters) - European shares fell on Friday and
were set for weekly losses, hurt by lower commodity prices and
as a rout in global technology shares weighed, even as airlines,
media companies, banks and telecoms firms around the world said
system outages were disrupting their operations. 
    The pan-European STOXX 600 index  .STOXX  fell 0.6% by 0834
GMT, slipping to a more than two-week low, amid a broader
selloff across sectors. 
    Travel and leisure shares  .SXTP  led losses with a 2.6%
drop and were on course to log their worst day in more than a
month, driven by a 9.3% fall in Evolution  EVOG.ST  after it
maintained its full-year guidance. 
    Miners  .SXPP  shed 2.1%, weighing the most on the benchmark
index, on lower commodity prices due to the lack of Chinese
stimulus measures.  MET/L 
    German shares  .GDAXI  lost 0.9% after producer prices in
the regions largest economy fell by 1.6% on the year in June, in
line with analysts' expectations in a Reuters poll.
    The benchmark index was on course to log its fifth
consecutive session of losses and a weekly decline as investors
grapple with political developments in the United States and
tougher trade rules that led to a rout in technology shares. 
    Tech shares  .SX8P  were down 0.7% on the day and on track
to clock a more than 7% loss for the week. 
    "It's a little bit of a perfect storm of the impact on
Europe of this significant rotation out of tech in the U.S.
combined with some earnings disappointments in Europe this
quarter,' said Ben Laidler, head of equity strategy at Bradesco
BBI. 
    Lack of policy direction from the European Central Bank also
added to investors' uncertainty. 
    Separately, LSEG Group's  LSEG.L  Workspace news and data
platform suffered an outage on Friday that affected user access
worldwide, causing disruption across financial markets,
alongside a global cyber outage. 
   "Investors are already on edge for this tech rotation and
this global outage adds a further dose of uncertainty," Laidler
said.
        Among other stocks, Sartorius  SATG.DE  was down 11.8%
after the pharmaceutical equipment supplier cut its full-year
guidance.     
    On the flip side, Danske Bank  DANSKE.CO , Denmark's biggest
lender, surged 7.3% as it beat second-quarter net profit
expectations, helped by strong credit quality and higher net
interest income and on an interim dividend for shareholders.
    Electrolux  ELUXb.ST  added 2.7% after the world's
second-biggest appliances maker posted a quarterly operating
profit above estimates, helped by cost cutting.

 (Reporting by Shubham Batra, Shristi Achar A and Pranav Kashyap
in Bengaluru; Editing by Mrigank Dhaniwala)
 ((Shubham.Batra@thomsonreuters.com;))