European stocks fell for the fifth consecutive day on Wednesday, as real estate shares were impacted by negative statements from brokerage firms regarding property owners in Britain. Recent measures also affected the stocks of Dutch insurance companies and Swiss bank UBS. The Stoxx 600 European index decreased by 0.2% to close at its lowest level in six months. The real estate sector index in Europe dropped by 2%. Shares of Land Securities, British Land, and Derwent London fell between 3.4% and 4.3%.
Overall, market sentiment remained pessimistic amid investor concerns over the possibility of major central banks keeping interest rates high for an extended period, with the decline in the Chinese real estate sector also exacerbating negative sentiment. The Stoxx 600 appeared on track to suffer its first quarterly loss in four years, and the German DAX index became one of the worst performers regionally.
Meanwhile, Dutch insurance stocks took a heavy hit after court rulings in a long-standing battle over investment-linked products raised the possibility of substantial compensation claims. The stock of NN fell by 18.8%, and ASR's stock decreased by 14.2%. UBS shares slid by nearly 3% following a report that the U.S. Department of Justice intensified scrutiny of suspected violations of rules that helped clients from Russia evade sanctions. On the other hand, H&M's stock rose by 3.4% after the world's second-largest clothing retailer announced a slightly greater-than-expected increase in its quarterly profits, supported by cost-cutting measures.
