European utilities slip after Germany loosens debt brake

Hera SpA

05/03/2025 09:57

** Shares in European utilities companies fall as Euro bond yields rise after German parties hoping to form the country's next government agreed to historic loosening of its debt brake

** The pan-European STOXX 600 utilities index .SX6P is down 1.2% as of 0952 GMT

** "As bond yields rise the market sells utilities, that become less attractive even if they offer good dividends," a Milan-based trader says

** Britain's National Grid NG.L, Italy's Terna TRN.MI and Italgas IG.MI, Spain's Iberdrola IBE.MC, France's Engie ENGIE.PA and Germany's E.ON EONGn.DE  are among the worst performers of the index, falling between 1.2% and 3%

 (Reporting by Philippe Leroy Beaulieu, Giancarlo Navach)

 ((Philippe.leroybeaulieu@thomsonreuters.com))