Financial Stocks Weighed Down by Downgrades
While the energy sector thrived, financial stocks faced some headwinds. Schroders, the UK fund manager, saw a 4.4% decline in its shares after a downgrade by Exane BNP Paribas. Additionally, Jefferies expressed concerns about the company’s prices-earnings premium. As a result, financials lost 0.5% in overall value.
Ryanair’s Profit Forecast Trims Shares
Ryanair, widely recognized as Europe’s largest airline by passenger numbers, experienced a 2.9% drop in its shares after adjusting its profit forecast for the fiscal year ending in March. The airline’s revision caused a slight dampening effect on the market.
Holcim Soars as It Announces North American Operations Spin-Off
In contrast to the setbacks observed in other sectors, Holcim was a standout performer on the benchmark index. The Swiss building materials giant saw a 3.6% jump in its shares following the announcement of its plan to spin off its North American operations. This move was met with positive market sentiment.
Philips and Bayer Face Setbacks
Not all companies experienced favorable outcomes. Philips, a renowned health technology firm, saw a 5.6% decrease in its shares after reaching a settlement with the U.S. Food and Drug Administration regarding a significant ventilator recall. Similarly, Bayer, the German conglomerate, faced a 5.4% drop in its shares after being ordered to pay $2.25 billion to a man who claimed to have developed cancer due to exposure to the company’s Roundup weedkiller. These setbacks were reflected in the respective company’s stock performance.
Goldman Sachs Lowers Earnings Growth Forecast
To add to market uncertainty, Goldman Sachs revised its earnings growth forecast for European STOXX 600 companies. The investment bank downgraded its projection from 7% to 3% for the year 2024. This adjustment was attributed to headwinds stemming from lower oil prices and inflation.