European Utilities Sell Off in Q1 on Falling Power Prices; RWE, SSE, Centrica, and Orsted Top Picks
European utilities have reversed their outperformance in the fourth quarter of 2023 because of a fall in wholesale power prices in the wake of gas prices after a very mild winter, and a pickup in interest rates due to inflation receding more slowly than expected. The former led to some of the companies, most exposed to power prices, cutting their guidance for 2024.