European equities dropped, weighed down by Nestle SA after the world’s largest food company dismissed its chief executive officer. Investors awaited key US job data later this week for clues about a potential Federal Reserve rate cut.
The Stoxx Europe 600 Index retreated 0.5% as of 8:19 a.m. in London. The auto and consumer sectors outperformed, while technology as well as food and beverage sectors were among the biggest laggards.
Among individual stocks, Nestle shares dropped as much as 3.6% after the firm ousted CEO Laurent Freixe because of an undisclosed workplace affair and named Nespresso chief Philipp Navratil as his successor.
European stocks have lost steam on concerns about political developments in France after nearing record highs last month. Traders will be watching US jobs data this Friday, with the unemployment rate expected to tick up to an almost four-year high.
“We think that Europe will resume the path of relative outperformance versus the US into year end,” said Stephan Kemper, chief investment strategist at BNP Paribas Wealth Management. “In the short-term, however, the overall outlook for equities might be a bit bumpy as we enter the weakest month of the year both for European and US markets.”
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With assistance from Michael Msika.
This article was generated from an automated news agency feed without modifications to text.
