European Shares Slip After Fed Rate Cut; Mercedes Stock Plunges | Market Update
In the wake of the U.S. Federal Reserve's interest rate cut, European shares took a hit on Friday. The pan-European index fell 0.4% to 519.52 points, with all major markets trading lower except for Spain, which edged up 0.1%. The automotive sector saw significant losses, driven by a 7.6% drop in Mercedes-Benz stock after the company slashed its profit outlook due to declining sales in China.
Additionally, German producer prices fell less than expected in August, and consumer confidence in the Eurozone hit a six-month low, causing further declines in the market. Investors are now waiting for consumer confidence data for September to gauge the region's economic health.
On a positive note, Novo Nordisk stock advanced 0.5% after receiving approval from the European Medicines Agency for its popular drug Wegovy to help treat heart failure in obese individuals.
In summary, the recent events in the financial market, including the Fed rate cut and Mercedes' profit warning, have had a significant impact on European shares. Investors should closely monitor market trends and economic data to make informed decisions about their finances.