- Thyssenkrupp's second-quarter profit plunges, shares down
- Siemens falls as cash flow miss overshadows Q2 beat
- Energy sector leads losses on STOXX 600
May 15 (Reuters) - European shares slipped on Thursday, dragged by energy stocks, while investors awaited key economic data and remarks from U.S. Federal Reserve Chair Jerome Powell.
As of 0830 GMT, the continent-wide STOXX 600 index dipped 0.2%, with the energy sector down 1.7% and leading losses. Most local bourses were also trading in the red.
Oil prices dropped more than 3% on the prospects of a potential U.S.-Iran nuclear deal that could ease sanctions and boost supply.
Major oil firms bore the brunt, with BP and Shell falling 3.7% and 2.5%, respectively.
Basic resources also incurred heavy losses, down 1.5%, weighed down by lower metal prices.
Global markets, this week, have welcomed the U.S.-China trade truce and U.S. President Donald Trump's investment deals from the Middle East during his Gulf tour. However, Trump has yet to announce deals with the European Union.
"Broadly speaking, the appetite in the European stock markets has been slowing for two reasons. The first one is the fact that there is no news (regarding EU deals) with the United States so far," said Ipek Ozkardeskaya, senior market analyst at Swissquote Bank.
"The second is the fact that the inflation numbers have not necessarily been in favour of the ECB (European Central Bank) recently."
Investors were now awaiting the first-quarter euro zone flash GDP and employment data, due later in the day.
However, Powell's remarks, also later in the day, will take the centre stage for potential insights into the monetary policy outlook.
Attention is also focused on upcoming U.S. retail sales data and Walmart earnings, which could offer a clearer picture of consumer sentiment.
Among single stocks, Thyssenkrupp dropped 10% after the submarines-to-car parts group posted a plunge in its second-quarter operating profit.
Shares in Siemens fell 2.7%, with analysts attributing the decline to weaker-than-expected free cash flow, despite beating expectations for second-quarter results.
German pharmaceutical and specialty materials group Merck KGaA fell 6% after it guided more cautiously for 2025 earnings, citing the macro-economic and geopolitical environment as well as foreign-exchange headwinds.
Despite the day's corporate results, European companies on average have weathered the turbulence sparked by U.S. President Donald Trump's tariff policies.
According to data compiled by LSEG, first-quarter earnings are expected to have risen 1.9% from a year ago.
Reporting by Nikhil Sharma; Editing by Sherry Jacob-Phillips and Varun H K
Source: Reuters