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European Shares Slide In Cautious Trade

stockmarkets aug16 23feb21 lt

European stocks were moving lower on Tuesday, as investors kept an eye on bond yields and awaited testimony from Federal Reserve Chair Jerome Powell later in the day where most analysts expect Powell to reiterate the Fed's commitment to maintain a dovish policy.

In economic releases, the U.K.'s unemployment rose to 5.1 percent in the three months to December, a five-year high, official figures showed earlier today.

There was muted reaction to British Prime Minister Boris Johnson's "roadmap" out of lockdown.

The pan European Stoxx 600 dropped 0.6 percent to 410.40 after declining 0.4 percent on Monday.

The German DAX fell 0.9 percent and the U.K.'s FTSE 100 eased 0.2 percent, while France's CAC 40 index was marginally lower.

Health technology company Philips dropped 1 percent after providing an update on the composition of its supervisory board.

German healthcare group Fresenius was moving up after confirming its 2021 guidance as well as targets until 2023.

Cement-maker HeidelbergCement lost 2.4 percent after its revenue fell in the fourth quarter of last year.

Travel stocks were gaining ground, with Air France KLM rallying 6.8 percent, Lufthansa surging 5.3 percent and TUI AG gaining 4.2 percent.

Chemicals group Covestro rose half a percent after announcing it would set dividend payout on a new basis.

Higher commodity prices lifted miners, with BHP and Anglo American rising around 1 percent.

BP Plc rallied 2.6 percent and Royal Dutch Shell added 1 percent as oil prices jumped by more than $1, underpinned by optimism over Covid-19 vaccine rollouts and lower output.

Lender HSBC Holdings declined 1.5 percent after it abandoned its long-term profitability targets and unveiled a revised strategy focused mainly on wealth management in Asia.

Intercontinental Hotels Group, whose brands include the Crowne Plaza, Regent and Hualuxe hotel chains, climbed 3.7 percent.

After slumping into a loss in 2020, the company said it is pressing ahead with its expansion plans to take advantage when things do pick up again.

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