June 19 (Reuters) – European shares ended lower on Wednesday, pressured by losses in real estate and technology stocks, while UK stocks were buoyed by metal miners as investors digested its inflation data.
The pan-European STOXX 600 (.STOXX), opens new tab closed down almost 0.2%, with the real estate sector (.SXP86), opens new tab falling 1.2% and technology stocks (.SX8P), opens new tab dropping 1.1%.
Basic resources stocks (.SXPP), opens new tab added 0.6%, tracking a rebound in metal prices and leading sectoral gains.
Britain’s FTSE 100 (.FTSE), opens new tab reversed earlier losses to close up 0.2%. Data showed UK inflation returned to its 2% target in May for the first time in nearly three years, but underlying price pressures remained strong, meaning the Bank of England (BoE) is likely to wait longer before cutting interest rates.
“Economies are stagnant, but no worse. So the cost of being too dovish on inflation and seeing it re-accelerate is a greater risk for (the BoE) than keeping things tighter for another meeting or two in search of more data,” said Richard Flax, chief investment officer at Moneyfarm.
Market focus will now shift to interest rate decisions from central banks in Britain, Norway and Switzerland later this week.
European shares saw sharp losses last week after France’s president called a snap election, with its high debt levels a source of concern for market participants.
The European Commission said France and six other countries should be disciplined for running budget deficits in excess of European Union limits, with deadlines for reducing the gaps to be set in November.
Latest polls suggest Marine Le Pen’s far-right National Rally party is leading ahead of the first round of the French parliamentary election.
The French benchmark CAC 40 (.FCHI), opens new tab closed nearly 0.8% lower.
Travel and leisure stocks (.SXTP), opens new tab added 0.6% to the pan-European index, boosted by a 1.4% rise in Accor (ACCP.PA), opens new tab after Barclays upgraded the hotel group to “overweight” from “equal weight”.
SMA Solar Technology AG (S92G.DE), opens new tab plunged 31% after the German solar power parts supplier cut its profit guidance, citing political uncertainty.
Belgian metal recycling group Umicore (UMI.BR), opens new tab jumped 3.4% on a J.P. Morgan double upgrade.
Trading was light in the absence of U.S. participants as markets there were shut for a public holiday.
Reporting by Shashwat and Shristi Achar A in Bengaluru and Jesus Calero in Gdansk; Editing by Mrigank Dhaniwala and Mark Potter
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.