European shares sag; SAP boosts tech stocks, Germany’s DAX

By Paolo Laudani and Ankika Biswas

(Reuters) – European stocks slipped on Tuesday, as investors navigated geopolitical and global interest-rate cut uncertainties, while German SAP’s strong outlook boosted tech stocks and helped the country’s main stock index buck the sluggish trend.

The pan-European index ticked down 0.3%, as of 0830 GMT.

The index has hit record highs multiple times this year, but momentum has sagged on concerns around the European economy and Chinese demand.

“With the European economy looking so weak, the fact that we had back-to-back ECB rate cuts and expectation of cuts from the Bank of England will start to boost confidence in business and with the consumer,” said Danni Hewson, head of financial analysis at AJ Bell.

“For now, there’s an awful lot of moving parts and investors are just trying to keep up with what’s going on.”

Taking some shine off equities, key triggers including the November U.S. elections, doubts over the pace of Federal Reserve rate cuts and the ongoing geopolitical tensions have boosted the safe-haven U.S. dollar and gold.

On the earnings front, SAP’s shares rose 5% after the software company increased its full-year targets on strong cloud business in the third quarter, helping the tech index rise 1.4% and top sectoral gainers.

With the stock commanding around 15% weightage on index, the benchmark index gained around 0.5%, while other regional bourses in France, Spain and Italy were down 0.1% to 0.6%.

Logitech (NASDAQ:) surged 3% at open after the Swiss tech firm increased its full-year outlook, but it later reversed course and was down 1%.

Meanwhile, real estate was the worst-hit sector, with Sweden’s Wallenstam slumping 6% after its nine-month results.

Randstad, the world’s largest employment agency and therefore crucial to assess the job-market condition, reported quarterly profit slightly above expectations, sending its shares up 4% to a 2-1/2-year high.

Saab surged 5%, after the military-hardware producer said its quarterly operating earnings were bigger than expected and confirmed its annual outlook.

Norway’s largest bank DNB rose 5% after topping its third-quarter profit forecast, while Danish shipping group Maersk climbed 2% after raising its full-year forecasts.

Laboratory testing firm Eurofins fell 8% after the company reported nine-month growth below its guidance, hitting the bottom of the STOXX 600.

Sweden’s Munters dropped 8% after the company posted a third-quarter print below market expectations.