UBS, retailers weigh on European stocks amid recession worries
2022.07.26 10:46
FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, July 25, 2022. REUTERS/Staff
(Reuters) – European stocks fell on Tuesday as a slide in retailers and Swiss bank UBS offset a rally in oil stocks and Unilever (NYSE:UL), which rose after an upbeat sales forecast.
The pan-European STOXX 600 index fell 0.1% by 0722 GMT with broader sentiment remaining fragile on recession worries.
Russia is set to cut more gas supplies to Europe, while investors also brace for a possible interest rate hike by the U.S. Federal Reserve on Wednesday.
Retail stocks were the biggest decliners, down 2.3%, hit by a profit warning from top U.S. retailer Walmart (NYSE:WMT) Inc, which cited surging prices for food and fuel affecting discretionary demand.
Europe’s luxury stocks fell, with French liquor maker Remy Cointreau losing 0.3% despite an earnings beat.
London’s commodity-heavy FTSE 100 outperformed, up 0.4% as prices of crude, base metals and iron ore rose, buoying miners and oil stocks. (L)
The biggest boost came from a 2.2% jump in consumer company Unilever after it raised its full-year sales forecast.
Upbeat outlook from Swiss chocolate maker Lindt & Spruengli saw its shares rise 3.3%.
Not all earnings were upbeat. Swiss bank UBS fell 5.7% on posting a smaller-than-expected rise in second-quarter net profit, while web-cams maker Logitech (NASDAQ:LOGI) International lost 3.7% after reporting a 38% fall in first-quarter adjusted profit.
