Written by Pranav Kashyap
(Reuters) – European shares hit their lowest level in more than a month on Wednesday, as disappointing profit reports were at risk, while investors weighed economic data from across the region.
The pan-European fell 0.7% to 514.37 points after touching its lowest level since September 23 at the start of the session.
Luxury stocks, which are often traded as proxies for China, were a big drag on the benchmark index. Both LVMH and L'Oreal fell by around 2%, while Kering (EPA: ) lost 3.1%. [.SS]
The technology sector shed 1.6%, dragged down by a 7.5% drop in Capgemini after the French IT consultancy group lowered its 2024 revenue target.
Market participants are also expecting a lot of important economic data.
Euro zone preliminary GDP for the third quarter and consumer confidence data for October are due later in the day. The UK budget, scheduled for 1230 GMT, will be on investors' radar.
“The main focus will be on how much more borrowing there is, especially compared to two years ago when budgets under Liz Truss sent UK markets into crisis,” Deutsche Bank analysts said in a note.
In results-driven trends, GSK lost 3.1% after it lowered its 2024 target sales forecast.
ASM International (AS:) gained 4.3% after the chip-making equipment supplier raised its 2025 forecast range.
UBS gained 1% after the bank posted strong third-quarter profits and almost doubled its forecasts.
Standard Chartered (OTC: ) rose 3.5% after the lender's quarterly profit beat market estimates.
Meanwhile, Germany's economy grew stronger than expected in the third quarter, and unemployment in the country rose more than expected in October.
Its benchmark was down 0.5%.
The data showed that the French economy grew by 0.4% in the third quarter. Its benchmark lost more than 1%.
Spain's inflation rate rose to 1.8% in October. Its economy grew faster than expected in the third quarter, while Italy's economy stagnated.
Investors will also keep an eye on the comments of the board member of the European Central Bank, Isabel Schnabel who is due to comment later in the day.
Across the Atlantic, the neck-and-neck race between US presidential candidates Kamala Harris and Donald Trump was also high on investors ahead of the November 5 election.
It stands just shy of a high of $73,803.25 as markets weigh the prospect of a Trump victory, widely seen as taking a bullish stance on the digital asset.
