Financials stocks lead declines
Dassault falls on dour annual revenue forecast
Euro zone factory activity eases in Jan

Feb 1 Reuters European shares edged down on Thursday as losses in lenders eclipsed the gains in tech sector, while sentiment was dampened by the U.S. Federal Reserve39;s signals that an early interest rate cut was unlikely.

The panEuropean STOXX 600 index fell 0.1 as of 0932 GMT.

Banks dragged the most, down 1.5, led by an 8.2 drop in BNP Paribas after the French lender missed quarterly earnings expectations, prompting it to push back its 2025 profit target.

Sabadell added to the sector39;s losses, down 2.6, as the Spanish bank struck a cautious note on the outlook for net interest income growth in 2024 following a decline in fourthquarter lending revenue.

Dassault Systemes dropped 7.3 after the French software maker projected revenue growth of 810 this year at constant currencies, below analyst expectations.

Losses in Dassault and BNP pulled France39;s CAC 40 index down 0.7, among poor performers across the region39;s bourses.

Adding to the subdued sentiment, market expectations of an early interest rate cut were dampened overnight as the Fed left rates unchanged but was less dovish than anticipated, leading to Wall Street ending sharply lower on Wednesday.

The Fed has done a lot to encourage this speculation that rates would be coming down, but clearly, still some balancing is to be done there, said Russ Mould, investment director at AJ…