European Markets Falter Amid Economic Uncertainty Post U.S. Shutdown

European shares closed lower as investors focused on U.S. economic data following the end of the longest government shutdown in U.S. history. Siemens fell after disappointing earnings, contributing to the decline. Analysts anticipate a Federal Reserve interest rate cut amid signs of a weakening U.S. labor market.

European shares closed lower on Thursday, driven by investor concerns over forthcoming U.S. economic data, overshadowing the recent end of the longest government shutdown in the nation's history. Siemens reported underwhelming earnings, sending its stock tumbling and weighing heavily on the market.

The pan-European STOXX 600 index fell by 0.6% to 580.67 points, despite hitting an intraday record high earlier. Germany's DAX dropped 1.4% and Britain's FTSE 100 decreased by 1.1%. Experts attributed the slump to profit-taking after the shutdown's conclusion, with anticipation for a Federal Reserve rate cut growing in the wake of a weakening labor market.

Industrial and financial stocks faced significant losses, with Siemens plummeting 9.4% and investment company 3i Group suffering its worst day on record. In contrast, Danish pharmaceuticals firm Alk-Abello saw gains, and German healthcare company Merck surpassed market expectations with a promising earnings report.

(With inputs from agencies.)