- SocGen shares drop after new strategy flags little growth
- Swiss drug ingredient maker Lonza’s CEO to leave, shares fall
- Nordic Semiconductor falls after Q3 guidance cut
- STOXX 600 down 1.1%
Sept 18 (Reuters) – European shares fell on Monday as French bank Societe Generale’s shares slumped after a keenly awaited strategic plan from its new CEO disappointed investors, while caution reigned ahead of a slew of central bank meetings this week.
The pan-European STOXX 600 (.STOXX) dropped 1.1% after rising close to 1.6% last week.
The euro zone banks index (.SX7E) dipped 1.9%.
Dragging down the healthcare sector, Novo Nordisk shares (NOVOb.CO) lost 2.4% after a report showed that U.S. drug regulators had recently issued a report detailing quality control lapses at the group’s Clayton, North Carolina plant.
Rising bond yields across the euro zone pushed rate-sensitive real estate stocks (.SX86P) down 2.6% following hawkish remarks by European Central Bank policymakers after the central bank raised borrowing costs by 25 basis points last week.
Slovak policymaker Peter Kazimir said the ECB’s rate hike on Thursday might have been its last for now but policymakers would need until March to be sure and further rises could yet be ruled out.
“While forward guidance is likely to be limited, we expect the (BoE’s) Monetary Policy Committee to strike a dovish tone indicating that a peak in the Bank Rate is near if not already reached,” said Kirstine Kundby-Nielsen, analyst at Danske Bank.
The Swedish crown sank to a record low against the euro on Monday, days before the Riksbank is expected to raise interest rates again.
Lonza’s (LONN.S) chief executive, Pierre-Alain Ruffieux, will leave the Swiss company by mutual agreement at the end of the month. This sent the contract drug manufacturer’s shares down 14.7% amid concerns about the group’s medium-term profit prospects.
Reporting by Bansari Mayur Kamdar and Shashwat Chauhan in Bengaluru; editing by Varun H K, Savio D’Souza and Mark Heinrich
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