European shares fall on dour earnings, Fed minutes sour sentiment By Reuters

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<span>© Reuters. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, August 16, 2023. REUTERS/Staff/File Photo</span><br />
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<p>By Shashwat Chauhan</p>
<p>(Reuters) -European shares slipped on Thursday as downbeat earnings and BAE Systems (OTC:) weighed, while investors were in risk-off mode after minutes from the U.S. Federal Reserve’s July meeting hinted at rates remaining higher for longer.</p>
<p>The pan-European fell 0.4%, hitting a more than one-month low.</p>
<p>BAE Systems shed 4.5% after Britain’s largest defence company said it agreed to buy <span itemscope="" itemtype="http://schema.org/Corporation"><span itemprop="name"> Ball Corp </span></span> (NYSE:)’s aerospace assets for about $5.55 billion in cash.</p>
<p>Europe’s aerospace and defence sector dropped 1.3%.</p>
<p>Adyen NV tumbled 22.6%, falling to the bottom of the STOXX 600 after the Dutch payments processor missed analyst estimates and its own ambitious first-half earnings targets. The industrial goods and services sector slumped 1.6%.</p>
<p>Amsterdam stocks fell 1.1%, reaching their lowest level in over a month.</p>
<p>Meanwhile, Wall Street futures edged higher after markets closed lower on Wednesday as minutes showed Fed officials were divided over the need for more interest rate hikes.</p>
<p>“It seems there is some disagreement on whether there should be more hikes or not,” said Anthi Tsouvali, multi-asset strategist at <span itemscope="" itemtype="http://schema.org/Corporation"><span itemprop="name"> State Street </span></span> (NYSE:).</p>
<p>“There’s one thing certain that rate hikes are still on the table and rates will remain elevated for longer.”</p>
<p>Bond yields across Europe jumped, with sharp spikes in Italy and Germany pressuring equities. [GVD/EUR]</p>
<p>Stocks in Norway eased 0.1% after the country’s central bank raised its benchmark interest rate by 25 basis points (bps) to 4.0%.</p>
<p>“Norges Bank is very close to the end of its tightening cycle,” wrote Jack Allen-Reynolds, deputy chief euro-zone economist at Capital Economics.</p>
<p>In a bright spot, the basic resources sector added 0.6%, its first gain in six sessions.</p>
<p>The STOXX 600, weighed by signs of slowing growth in China, has underperformed its U.S. peers this year, with its 6.8% gain well below the 14.7% jump in the .</p>
<p>Among individual stocks, Aegon (NYSE:) fell 3.9% after the Dutch insurer’s Solvency II ratio at the end of June missed estimates.</p>
<p>Nibe lost 5.8% after the Swedish heat pump maker reported second-quarter results below estimates.</p>
<p>Geberit fell 4.4% after the Swiss plumbing supplies maker cut its full-year outlook citing significant deterioration in the construction industry.</p>
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