European shares opened lower on Thursday, pressured by declines in automobile and energy stocks as multiple industry heavyweights traded ex-dividend, offsetting gains in insurance stocks like Swiss Re and Zurich Insurance following positive earnings reports, according to Reuters. The pan-European STOXX 600 remained unchanged at 0725 GMT after nine consecutive days of gains. The benchmark index had reached a record high on Wednesday due to a lower-than-expected rise in US consumer prices in April, boosting expectations for a Federal Reserve rate cut in September. Automobile stocks were the hardest hit, with BMW and Daimler Truck dropping 5.6 per cent and 3.1 per cent, respectively, as they traded ex-dividend. The energy sector also fell by 0.9 per cent, with BP losing 2 per cent for the same reason. Siemens shares fell by 1.5 per cent after reporting a 2 per cent decline in second-quarter industrial profit, missing estimates due to a slowdown in its flagship factory automation division. Conversely, Zurich Insurance rose by 2.1 per cent, supported by an increase in first-quarter property and casualty premiums driven by higher rates. Swiss Re shares climbed 3 per cent after reporting a better-than-expected first-quarter net profit and announcing plans to exit its digital white-label business.
