© Reuters. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, August 23, 2023. REUTERS/Staff/File Photo
By Bansari Mayur Kamdar
(Reuters) – European shares were flat on Tuesday as losses in technology stocks offset gains by healthcare companies, while Germany’s biggest software maker SAP fell after U.S. peer Oracle (NYSE:)’s disappointing revenue forecast.
The pan-European index was little changed as of 0812 GMT, while weakness in tech stocks weighed on , trading down 0.4% and lagging regional peers.
Shares of SAP slid 1.9% to the bottom of the German blue-chip index DAX, after its U.S. peer Oracle projected current-quarter revenue below Wall Street targets as tough economic conditions pressured cloud spending by businesses.
Healthcare stocks rose 0.6%, with drugmakers Novartis (SIX:), Novo Nordisk (NYSE:) and Roche gaining between 0.5% and 1.8%.
Britain’s export-focussed rose 0.4%, supported by a softer pound after data showed labour market weakened even as wage growth stayed strong in July, painting an unclear picture ahead of the Bank of England’s interest rate decision next week.
“The strength of wage growth remains too strong for policymakers to declare victory, even if continued softening elsewhere in the release suggests that this is unlikely to persist for much longer,” said Nick Rees, FX market analyst at Monex Europe.
“Unless a significant surprise materialises in next week’s CPI release, a 25 basis point hike on Sept. 21 that takes Bank Rate to 5.5% is likely to be the last of this tightening cycle.”
Spain’s national consumer prices rose 2.6% in the year through August, driven by the increased cost of fuel, final data from the National Statistics Institute (INE) showed.
Investors awaited U.S. inflation figures on Wednesday that could provide an updated view on interest rates after the Federal Reserve kept the door open to further policy tightening.
Among other movers, Airbus eased 1.1% after engine supplier Pratt & Whitney on Monday warned about a rare manufacturing flaw that could ground hundreds of Airbus jets at any one time in coming years.
Shares of Associated British Foods (OTC:) rose 1.4% after the Primark owner raised its full-year profit outlook for the second time in four months, underpinned by strong trading at its fast-fashion clothing and food operations.
Ireland-based Smurfit Kappa shed 10.6% after the company agreed to combine with WestRock (NYSE:), to create one of the world’s largest paper and packaging producers worth nearly $20 billion.
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