European real estate stocks slide after higher-than-expected US CPI

Sagax AB

10/04/2024 14:51

** European real estate stocks  .SX86P  fall after
higher-than-expected U.S. consumer prices cast further doubt on
potential interest rate cuts by the Fed in the near term 
    ** Swedish stocks are at the bottom of the real estate
index, with Fabege  FABG.ST , Wallenstam  WALLb.ST , Balder
 BALDb.ST  and Sagax  SAGAa.ST  sliding 3-4%
    ** The Swedish real estate sector has suffered from soaring
interest rates and mounting debt, threatening the country's
financial stability
    ** "The Swedish Riksbank follows the Fed and the ECB quite
closely," Carlsquare analyst Bertil Nilsson says, noting the
higher-than-expected read means the Fed "is likely to become
more hawkish"
    ** That will probably affect the Swedish central bank's rate
cut path, he adds
    ** However, Nilsson says he finds the 3-4% declines in
stocks "a bit excessive"
    ** Outside Sweden, Vonovia  VNAn.DE , Unibail  URW.PA ,
Kojamo  KOJAMO.HE  and LEG  LEGn.DE  slip around 2%

 (Reporting by Boleslaw Lasocki)
 ((boleslaw.lasocki@thomsonreuters.com; +48 58 769 66 00;))