European shares edge lower; AstraZeneca helps cut losses

  • AstraZeneca raises full-year adj. revenue forecast
  • Leg Immobilien leads property losses
  • Delivery Hero jumps to top of STOXX 600 index
  • US CPI in focus for signs Fed is slowing rate hikes

Nov 10 (Reuters) – European shares fell on Thursday, led by declines in property shares, with losses capped by gains in British drugmaker AstraZeneca after upbeat earnings.

The pan-European STOXX 600 index (.STOXX) was down 0.2% by 0917 GMT, after snapping a three-day winning streak on Wednesday.

European property shares ( .SX86P ) fell 1.7%, with German housing group LEG Immobilien ( LEGn.DE ) tumbling 6.7% after it slightly cut its annual profit forecast.

The property sector index posted its biggest one-day percentage drop in one week.

Still, declines in European markets were fairly contained. MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) fell 1.4% as investors awaited U.S. consumer price data due later in the day.

The reading is likely to show a slowdown in both the monthly and annual core numbers for October, according to a Reuters poll.

“Inflation data is understandably one of the biggest market attractors of the month,” says Chris Turner, global head of markets at ING.

Turner said that while the data may not have the final say on the Federal Reserve’s December interest rate decision, as U.S. employment data is due next month, “it could set the tone for the Fed’s comfort level.”

Markets in Europe welcomed the Fed’s hint to deliver its rate hikes in small increments. The STOXX 600 index is now looking at its fourth straight week of gains, also supported by a better-than-expected earnings season.

AstraZeneca ( AZN.L ) rose 1.4% as it raised its full-year adjusted earnings forecast after beating expectations for quarterly profit and revenue.

Allianz gained 2.5% as the German insurer gave a more optimistic full-year outlook after reporting a better-than-expected 17% rise in third-quarter net profit.

German takeaway food company Delivery Hero ( DHER.DE ) rose 10.4% to top the STOXX 600 after it reassured investors on achieving an adjusted core profit margin in 2023 and upgraded its guidance for this year .

Knorr Bremse (KBX.DE) advanced 9.8% after the German brake systems maker reported better-than-expected quarterly earnings.

Even as earnings were upbeat, sentiment was weighed down by a likely drop in major cryptocurrency exchange FTX after a deal with larger rival Binance collapsed.

“Sharp declines in cryptos may have undermined sentiment toward more speculative assets as financial conditions continue to tighten,” Mark Haefele, chief investment officer at UBS Global Wealth Management, wrote in a client note.

Reporting by Shreyashi Sanyal in Bengaluru; Editing by Dhanya Ann Thoppil and Sriraj Kalluvila

Our Standards: The Thomson Reuters Trust Principles.

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