European stocks slip as healthcare, real estate sectors weigh

(Reuters) – European shares slipped on Wednesday as losses in defensive sectors outweighed optimism over encouraging quarterly results from consumer giant Nestle and telecoms equipment maker Ericsson.

The pan-European STOXX 600 <.STOXX> slipped 0.3% by 0711 GMT, with the healthcare <.SXDP> and real estate <.SX86P> sectors falling more than 0.5%.

However, economically sensitive cyclical sectors such as banks <.SX7P> and automakers <.SXAP> rose as U.S. lawmakers moved closer to deal on a new coronavirus relief package.

Nestle gained 0.6% as it raised its guidance for 2020 organic sales growth, while strong demand for pet food and health products helped quarterly results.

Shares in Sweden’s Ericsson jumped 7.2% as higher margins and China’s 5G rollout helped the company beat quarterly core earnings estimates.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Subhranshu Sahu)