# European shares weighed by US debt ceiling concerns, slide in financials Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-05-17 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: European Shares Drop Amid US Debt Concerns Meta Description: Get the latest updates on European shares slipping due to US debt concerns and financials decline. Stay informed with Reuters. URL: https://financedigest.com/european-shares-weighed-by-us-debt-ceiling-concerns-slide-in-financialshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-05-17t073739z1lynxmpej4g09xrtroptp4europe-stocks-1736814008198-compressed.jpg) # European shares weighed by US debt ceiling concerns, slide in financials By Sruthi Shankar (Reuters) – European shares slipped on Wednesday as concerns about whether the United States can avoid a debt default, as well as a slew of downbeat corporate updates weighed on sentiment. The continent-wide STOXX 600 slipped 0.1%, with financial services companies and real estate firms leading declines. Euronext NV dropped 3.8% after the stock exchange operator reported a fall in [first-quarter revenue](https://www.financedigest.com/bnp-paribas-first-quarter-revenue-beats-as-trading-outperforms.html "BNP Paribas first-quarter revenue beats as trading outperforms") and income, while the London Stock Exchange Group dipped 3.9% after an investor consortium including U.S. buyout firm [Blackstone and Thomson Reuters sold shares worth about 2.7 billion](https://www.financedigest.com/blackstone-thomson-reuters-consortium-sells-3-4-billion-lseg-shares-at-discount.html "Blackstone, Thomson Reuters consortium sells .4 billion LSEG shares at discount") pounds ($3.41 billion). German lender Commerzbank AG dropped 6.5% after its net [interest income](https://www.financedigest.com/robinhood-coinbase-find-sanctuary-in-interest-income-amid-market-rout.html "Robinhood, Coinbase find sanctuary in interest income amid market rout") forecast for the full year fell short of analysts’ expectations. A risk-off mood prevailed in [global markets](https://www.financedigest.com/global-to-be-the-kingpin-for-europe-motorized-quadricycles-market.html "Global To Be The Kingpin For Europe Motorized Quadricycles Market") as top U.S. congressional Republican Kevin McCarthy told reporters both the parties remained far apart on an agreement to lift the [debt ceiling](https://www.financedigest.com/wall-street-gains-dollar-climbs-on-solid-data-debt-ceiling-progress.html "Wall Street gains, dollar climbs on solid data, debt ceiling progress") but added that it would be “possible to get a deal by the end of the week. European stock [markets have traded in tight ranges this month as investors assess the outlook](https://www.financedigest.com/over-the-air-engine-control-module-market-notable-developments-geographical-outlook.html "Over The Air Engine Control Module Market Notable Developments & Geographical Outlook") for European and U.S. interest [rates and the risk](https://www.financedigest.com/boe-flags-risk-of-recession-and-10-inflation-as-it-raises-rates-again.html "BoE flags risk of recession and 10% inflation as it raises rates again") of a U.S. debt default, with lawmakers struggling to reach a [deal over lifting the debt limit](https://www.financedigest.com/indias-carmakers-back-zero-duty-on-limited-british-imports-under-trade-deal-sources.html "India’s carmakers back zero duty on limited British imports under trade deal – sources"). UBS Group AG inched up 0.5% after the [Swiss bank](https://www.financedigest.com/swiss-press-freedom-dealt-blow-in-bid-for-overhaul-of-bank-secrecy-rules.html "Swiss press freedom dealt blow in bid for overhaul of bank secrecy rules") said it expects a financial hit of about $17 billion from the takeover of Credit Suisse Group AG but also estimated a one-off gain stemming from a so-called “negative goodwill” of $34.8 billion. While this is slightly smaller than some industry estimates, it’s a heavy cost to bear, and has been partly put down to the lack of time it was able to complete due diligence and [assess the web of problems at Credit](https://www.financedigest.com/modernising-credit-assessment-for-mortgages-finding-real-insights-to-create-real-opportunity.html "Modernising Credit Assessment For Mortgages – Finding Real Insights To Create Real Opportunity") Suisse,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown. European [Central Bank](https://www.financedigest.com/climate-change-fight-a-core-duty-for-central-banks-ecbs-villeroy.html "Climate change fight a ‘core duty’ for central banks – ECB’s Villeroy") (ECB) rate hikes are already weighing on housing investment across the euro zone and the impact is likely to increase, although it will be smaller than in the United States, the ECB said in a study. SAP added 1.7% after the German business software maker raised its 2025 total revenue outlook for continuing operations and announced a [share buyback of up to 5 billion euros](https://www.financedigest.com/unicredit-gets-ecbs-green-light-for-second-1-billion-euro-share-buyback.html "UniCredit gets ECB’s green light for second 1 billion euro share buyback"). Siemens AG climbed 2.7% after the [German engineering](https://www.financedigest.com/german-engineering-firms-expect-hit-from-supply-chain-bottlenecks-next-year.html "German engineering firms expect hit from supply chain bottlenecks next year") and technology group raised its full-year sales and profit guidance. (Reporting by Sruthi Shankar in Bengaluru; Editing by Sonia Cheema) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---