European equities edged lower on Tuesday as investors weighed an unexpected management change at Nestlé and prepared for the release of key Eurozone inflation figures.
By 08:16 GMT, the Stoxx 600 pan-European index fell 0.6%, Germany’s Dax dropped 0.9%, and the U.K.’s FTSE 100 declined 0.4%, while France’s CAC 40 remained largely flat.
The food and beverage sector underperformed, dragged down by a 1.7% decline in Switzerland-listed Nestlé (LSE:0RR6) shares. CEO Laurent Freixe was removed on Monday following a board review into a previously undisclosed romantic relationship with a subordinate that breached the company’s code of conduct. Philipp Navratil, a long-serving executive who led Nestlé’s Nespresso division, assumed the CEO role immediately.
The sudden shake-up adds pressure to a company already dealing with years of subdued sales and share price performance, following the departure of former CEO Mark Schneider last year. Long-serving Chair Paul Bulcke has also announced plans to step down in 2026.
Investors are now focused on the Eurozone consumer price index, expected later this morning. Headline inflation is forecast at 2.1% year-on-year for August, slightly above the European Central Bank’s 2% target, while core inflation, which excludes volatile items like food and energy, is seen at 2.2%.
Analysts at ING noted that the ECB anticipates CPI to ease to 1.6% next year, potentially supporting arguments for further rate cuts to stimulate the Eurozone economy. “Having said that, the direction of inflation from here is still a live debate at the Governing Council,” they wrote.
In individual stock moves, Kering (EU:KER) shares jumped after HSBC upgraded its rating on the Gucci parent from “hold” to “buy,” while Partners Group (LSE:PEY) rose following its half-year earnings report.
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