Europe open: Shares fall on weak US tech results; Zur Rose soars on Swiss sale
European shares were lower on Friday as softer earnings from major US tech giants dented sentiment, and despite a surge in Zur Rose stock after the online pharmacy said it was selling its Swiss business.
The pan-regional Stoxx 600 index was down 0.49% at 0829 GMT with all major regional bourses lower. Asia shares were mixed as the slump in various Adani group entities continued amid allegations from US short seller Hindenburg of financial wrongdoing.
US tech firms Alphabet, Amazon, and Apple all posted disappointing results after the close of trade on Wall Street.
“Stocks in Europe fell in early trading as the clutch of soft earnings update from the US pricked some of yesterday’s giddy optimism that (interest) rates are close to peaking,” said Neil Wilson at Markets.com.
“That jolt higher for tech was led by hopes the Fed was near its peak and by a huge rally for Meta shares. It’s a push-me pull-me on earnings and peak rate bets.”
In the only major equity news of note, shares in Zur Rose surged 70% at one point as the Swiss online drug retailer said it had agreed to sell its Swiss business to Migros subsidiary Medbase in order to focus on its business-to-consumer operation in Germany.
The proceeds of the transactions are estimated at 360m Swiss francs, with the deal set to be completed in the second quarter of 2023.
Sanofi shares fell as the drug maker forecast moderate earnings growth this year, saying higher demand for bestselling asthma and eczema treatment Dupixent would be partly offset by competition for its multiple sclerosis pill Aubagio and product launch costs.
Reporting by Frank Prenesti for Sharecast.com