European Shares Edge Lower After BoJ's Surprise Move

(RTTNews) - European stocks fell in cautious trade Tuesday after the Bank of Japan rattled markets with a surprise policy shift that allows long-term interest rates to rise more.

Investors were also reacting to comments by ECB policymaker Peter Kazimir that the "monetary policy should tighten at a stable pace."

The pan European STOXX 600 was down 0.4 percent at 424.01 after rising 0.3 percent on Monday.

The benchmark index fell nearly 1 percent earlier to reach its lowest levels since Nov. 10.

The German DAX slipped 0.2 percent, France's CAC 40 index shed 0,6 percent and the U.K.'s FTSE 100 was marginally lower.

Shares of Engie SA fell around 5 percent in Paris. The energy provider announced that its earnings in fiscal 2022 and 2023 will be impacted by the implementation of inframarginal rent caps in Europe.

Orange SA shares fell more than 1 percent. The telecom group said in a statement that its deputy chief executive and head of finance, Ramon Fernandez, would leave the company at the end of the first quarter of 2023.

Oilfield services provider Petrofac lost 10 percent in London after flagging an annual operating loss.

Klöckner advanced 1.7 percent. The German steel and metal company has agreed to acquire National Material of Mexico for US$340 million on a cash and debt free basis.

Pfeiffer Vacuum, a manufacturer of vacuum pumps, surged 2.6 percent after raising its FY sales outlook.

In economic releases, German producer price inflation eased more-than-expected in November to reach its lowest level in nine months amid a slowdown in the price growth of energy, data from Destatis showed.

Producer prices climbed 28.2 percent year-over-year in November, slower than the 34.5 percent surge in October. That was also slower than the 30.6 percent rise economists had expected.

Further, the latest inflation rate was the weakest since February, when prices had risen 25.9 percent.