UBS, Retailers Weigh On European Stocks Amid Recession Worries

UBS, Retailers Weigh On European Stocks Amid Recession Worries

(Reuters) – European stocks fell on Tuesday as a slide in retailers and Swiss bank UBS offset a rally in oil stocks and Unilever, which rose after an upbeat sales forecast.

The pan-European STOXX 600 index fell 0.1% by 0722 GMT with broader sentiment remaining fragile on recession worries.

Russia is set to cut more gas supplies to Europe, while investors also brace for a possible interest rate hike by the U.S. Federal Reserve on Wednesday.

Retail stocks were the biggest decliners, down 2.3%, hit by a profit warning from top U.S. retailer Walmart Inc, which cited surging prices for food and fuel affecting discretionary demand.

Europe’s luxury stocks fell, with French liquor maker Remy Cointreau losing 0.3% despite an earnings beat.

London’s commodity-heavy FTSE 100 outperformed, up 0.4% as prices of crude, base metals and iron ore rose, buoying miners and oil stocks. [.L]

The biggest boost came from a 2.2% jump in consumer company Unilever after it raised its full-year sales forecast.

Upbeat outlook from Swiss chocolate maker Lindt & Spruengli saw its shares rise 3.3%.

Not all earnings were upbeat. Swiss bank UBS fell 5.7% on posting a smaller-than-expected rise in second-quarter net profit, while web-cams maker Logitech International lost 3.7% after reporting a 38% fall in first-quarter adjusted profit.

(Reporting by Susan Mathew in Bengaluru; Editing by Shounak Dasgupta)