- German stocks retreat from record high
- Airbus rises amid string of new orders
- MTU Aero Engines up on FY earnings outlook hike
June 19 (Reuters) - European shares fell on Monday, with Franco-German lab equipment maker Sartorius leading the declines, while investors cautiously awaited further stimulus measures from China to revive demand.
The pan-European STOXX 600 index shed 0.6%, while Germany's DAX index dropped 0.6% after closing at a record high in the previous session.
Shares of Sartorius plunged 16.6%, to the bottom of the STOXX 600, after the company cut its 2023 revenue and margin forecasts on Friday.
The focus remains on geopolitics as U.S. Secretary of State Antony Blinken will meet with Chinese President Xi Jinping on Monday in Beijing, while China's cabinet met on Friday to discuss measures to spur growth in the economy, state media reported.
This comes after the People's Bank of China (PBOC) lowered short- and medium-term policy rates last week.
"There has been a lack of a more euphoric reaction in China-related markets to the latest easing measures," strategists at Jefferies wrote in a client note.
"Given such market action and the relatively disappointing data, the question is whether more aggressive stimulus is coming."
China-exposed luxury giant LVMH, which is Europe's most valuable firm, fell 1.3%, while the basic resources index dropped 1.3% amid demand worries from the top metals consumer.
MTU Aero Engines rose 3.4% upon raising its earnings forecast for 2023, leading gains on the STOXX Europe aerospace & defence index which added 0.8%.
Airbus shares gained 0.7% on a string of new orders by various airlines, and advanced talks over a major new order from Mexican ultra-low-cost carrier Viva Aerobus, industry sources said on Sunday.
The STOXX 600 is coming off its best performance in over two months, as investors start to look beyond major central bank events following hawkish messages from both the European Central Bank and the U.S. Federal Reserve.
Lender-heavy indexes of Spain and Italy were flat, bucking a trend among their European peers. The banks' index rose 0.2%, among the few sectors trading higher on the day.
Trading is expected to be thin as U.S. markets will remain shut for a public holiday on Monday.
Reporting by Shreyashi Sanyal in Bengaluru; Editing by Savio D'Souza and Eileen Soreng
Source: Reuters