Nestle's CEO Departure Sends Shockwaves Through European Markets
European shares decreased as Nestle's CEO Laurent Freixe was ousted due to personal misconduct. The STOXX 600 index fell by 0.1%, with the food and beverage sector notably impacted. Beyond Nestle, Kering saw gains after an upgrade from HSBC, and investors monitored upcoming eurozone inflation data.
On Tuesday, European shares experienced a downturn after Nestle dismissed CEO Laurent Freixe, citing a failure to disclose a romantic relationship with a subordinate. This leadership upheaval has introduced potential volatility for the Swiss food giant amid existing market challenges.
The STOXX 600 index declined by 0.1%, closing at 550.48 points. Nestle's shares plummeted by 3.2%, significantly impacting the food and beverage sector, which faced a 1.2% downturn. Meanwhile, the broader Swiss blue-chip index dropped 0.3%.
Contrastingly, Kering saw a notable 3.8% increase after HSBC upgraded its status from 'hold' to 'buy'. Partners Group also posted gains of 3.37% following its financial reports. As investors processed these market shifts, attention remained on the anticipated eurozone inflation report, with expectations of a 2% rise for August.
(With inputs from agencies.)
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