European Shares Slide on Tech and Healthcare Pressure

European shares declined as technology and healthcare stocks fell, pressured by US jobs data suggesting the Federal Reserve may delay cutting interest rates. The STOXX 600 index decreased by 0.5%, following previous declines. Energy stocks rose with crude oil prices, while bond yields remained high.


Devdiscourse News Desk | Updated: 13-01-2025 14:01 IST | Created: 13-01-2025 14:01 IST
European Shares Slide on Tech and Healthcare Pressure
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European shares experienced a downward trend on Monday, driven primarily by setbacks in the technology and healthcare sectors. This decline in global equities followed U.S. jobs data that strengthened predictions of a conservative Federal Reserve approach towards interest rate cuts this year.

The pan-European STOXX 600 index witnessed a 0.5% reduction by 0812 GMT, building on its nearly 1% drop last Friday. This followed the surprising news that U.S. job growth had accelerated in December, resulting in a lowered unemployment rate of 4.1%. Technology stocks mirrored declines seen in Wall Street, falling by 1.6%, accompanied by a 0.9% drop in heavyweight healthcare shares.

In contrast, European energy stocks showed resilience, advancing by 0.9% as crude oil prices climbed by over 1%. Government bond yields in Europe remained high, aligning with their U.S. Treasury counterparts. Investors are now turning their attention to upcoming inflation data from key European economies and a significant U.S. consumer price report.

(With inputs from agencies.)

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