European stocks fell today, Friday, under pressure from declines in technology and sportswear shares as investors assess the potential impact of a disruption in global trade due to attacks in the Red Sea. They are also awaiting key inflation data from the United States that could strengthen bets on interest rate cuts next year. The Stoxx 600 index dropped 0.2% by 08:17 GMT, on track for its weakest weekly performance in six weeks.
The Dutch company Prosus's stock plummeted by 14.5%, putting pressure on the technology sector which fell by 1.2%. The personal and household goods sector also declined by 0.6%, following a drop in shares of Adidas by 6.1% and Puma by 4.4%, after their American counterpart Nike reduced its annual sales forecasts. JD Sports shares decreased by 4.9%, contributing to a 0.9% drop in the broader retail sector.
Attention is increasingly turning to the Core Personal Consumption Expenditures Price Index in the United States, which is the preferred measure of inflation by the Federal Reserve, with data set to be released later today. Two shipping companies, including Germany's Hapag-Lloyd, announced they will avoid the Red Sea following attacks by the Houthi movement from Yemen on vessels in the area, disrupting global trade and prompting the formation of a naval task force. Hapag-Lloyd’s stock rose by 1%.
