Yahoo Finance CORRECTED-UPDATE 1-European shares dip ahead of ECB policy decision
(Corrects company name and instrument code to Volvo from Volvo Cars in paragraph 11)
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Societe Generale shares jump on unit sale
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Idorsia dives 18.5% after postponing FY and Q1 results
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AstraZeneca rises on plans to hike annual dividend
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STOXX 600 off 0.3% ahead of ECB decision due at 1215 GMT
By Johann M Cherian, Ozan Ergenay
April 11 (Reuters) - European shares slipped on Thursday as investors avoided big bets ahead of a monetary policy decision by the European Central Bank and remarks by ECB's Christine Lagarde on the outlook for interest rate cuts.
The pan-European STOXX 600 lost 0.3%, as of 0906 GMT. The telecommunications sector led sectoral declines, weighed by a 5.5% drop in Deutsche Telekom as the company traded ex-dividend. All eyes will be on ECB's decision due at 1215 GMT, where the central bank is likely to stand pat on interest rates, but focus will be on any hints that a rate cut could be delivered in June, given easing price pressures and economic weakness.
Rate-sensitive sectors such as real estate and banks dipped 0.6% and 1.0% respectively.
"The ECB has clearly signalled that it wants to see more evidence of moderating wage growth before it is ready to cut interest rates," said Joost van Leenders, senior investment strategist at Van Lanschot Kempen.
Following a broadly lacklustre week, the STOXX 600 hit a one-month low in the previous session after a hot U.S. inflation report sparked concerns on the timeline for the Federal Reserve's first interest rate cut and raising expectations that the ECB could lower rates before its U.S. counterpart. Societe Generale's shares topped the French blue-chip index CAC 40 and were up 2.5% after the lender said it has agreed to sell a professional equipment financing business to rival BPCE for 1.1 billion euros ($1.18 billion). Limiting declines, the oil and gas sector climbed 1.2%, tracking an uptick in crude prices. Idorsia postponed its 2023 and first quarter results publication, sending the Swiss biotech firm's shares down 19.2%. AstraZeneca rose 1.5% and was among the top gainers on UK's FTSE 100 index after the drugmaker said it plans to increase its annual dividend by 7% for 2024.
Volvo fell 3.4% after brokerage Citigroup downgraded the stock to "neutral" from "buy". (Reporting by Johann M Cherian and Ozan Ergenay; Additional reporting by Shubham Batra; Editing by Sherry Jacob-Phillips and Shounak Dasgupta)
