Market Analysis

European markets opened on a subdued note on Thursday, weighed down by declines in automobile and energy sectors due to several major companies trading ex-dividend. However, the losses were offset by gains in insurance stocks such as Swiss Re and Zurich Insurance, which reported positive earnings.

The STOXX 600, representing European stocks, remained unchanged as of 0725 GMT, following a nine-day winning streak during which it reached a record high. This bullish trend was supported by the anticipation of a potential Federal Reserve rate cut in September, fueled by a lower-than-expected increase in U.S. consumer prices for April.

Automobile stocks took a significant hit, particularly Bayerische Motoren Werke and Daimler Truck, which both saw declines of 5.6% and 3.1%, respectively, after trading ex-dividend. Similarly, energy stocks declined by 0.9%, with BP shedding 2% as it traded ex-dividend.

Siemens experienced a 1.5% decrease in its share price as its second-quarter industrial profit fell 2%, failing to meet expectations, largely due to a slowdown in its flagship factory automation division.

On the positive side, Zurich Insurance saw a 2.1% increase in its shares after reporting a rise in first-quarter property and casualty premiums, driven by increased rates. Swiss Re also performed well, with a 3% rise in its shares following better-than-expected first-quarter net profit and its announcement to exit its digital white-label business.

Paraphrasing text from "Reuters" all rights reserved by the original author.