European shares fall as BAE drags defence firms, Fed minutes sour sentiment
2023.08.17 03:45
© Reuters. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, August 16, 2023. REUTERS/Staff/File Photo
(Reuters) – European shares fell on Thursday, dragged by BAE Systems (OTC:) after it agreed to buy Ball Corp (NYSE:)’s aerospace business, while minutes of the U.S. Federal Reserve’s July meeting sparked concerns of interest rates remaining higher for longer.
By 0713 GMT, the pan-European fell 0.5%, touching an over one-month low.
BAE Systems slumped 3.2% after Britain’s largest defence company said it agreed to buy Ball Corp’s aerospace assets for about $5.55 billion in cash.
Europe’s aerospace and defence sector fell 1.2%.
Wall Street futures were mixed after markets closed lower on Wednesday as minutes showed Fed officials were divided over the need for more interest rate hikes.
Bond yields across Europe jumped, with sharp rises in Italy and Germany pressuring equities.
Aegon (NYSE:) slumped 4.7% after the Dutch insurer reported first-half results.
Stocks in Norway fell 0.6% ahead of the nation’s central bank decision on interest rates.
