EUROPE MARKETS: European Stocks Waver After Earnings Deluge, Upbeat U.K. GDP
October 27 2016 - 12:19PM
Dow Jones News
By Sara Sjolin, MarketWatch
Nokia slumps after reporting a loss -- again
European stock wobbled into the close on Thursday, as investors
digested a raft of earnings reports and better-than-expected growth
data from the U.K.
The Stoxx Europe 600 index ended down less than 0.1% at 341.71,
after a 0.4% slide
(http://www.marketwatch.com/story/european-stocks-down-for-third-straight-day-as-commodity-shares-pull-back-2016-10-26)
on Wednesday.
The pan-European benchmark swung between small gains and losses
throughout the day and had opened firmly lower after a downbeat
session in Asia
(http://www.marketwatch.com/story/weak-china-economic-data-help-push-asian-markets-down-2016-10-26).
China said industrial profits fell to 7.7% year-over-year growth in
September, a sharp slowdown from the 19.5% recorded the month
before.
Other movers: But during the day, markets in Europe trimmed
losses as investors analyzed the deluge of earnings that came out
on Thursday.
Deutsche Bank AG (DBK.XE) (DBK.XE) shares ended up 0.6%, after
the German lender posted an unexpected profit
(http://www.marketwatch.com/story/deutsche-bank-swings-to-unexpected-profit-2016-10-27-54853136)and
set aside more money for litigation costs.
Posting on of the biggest losses in the pan-European benchmark,
shares of AMEC Foster Wheeler PLC
(http://www.marketwatch.com/story/amec-foster-on-course-to-hit-yearly-targets-2016-10-27)(AMFW.LN)
tanked 20% after the oilfield-services company said it continues to
see weakness in some key markets.
Nokia Oyj (NOK) (NOK) slumped 7.6% after the
telecommunications-equipment reported a quarterly loss for the
third time in a row
(http://www.marketwatch.com/story/nokia-swings-to-quarterly-loss-to-broaden-lineup-2016-10-27).
Engineering giant ABB Ltd. (ABBN.EB) lost 6.6% after its
third-quarter revenue dropped
(http://www.marketwatch.com/story/abb-revenue-pressured-by-market-uncertainty-2016-10-27-14851115)
because of uncertainties over the U.S. presidential election and
the U.K.'s vote to leave the European Union.
Telefonica SA (TEF) gave up 1% after the Spanish telecoms major
cut its 2016 and 2017 dividends
(http://www.marketwatch.com/story/telefonica-trims-dividend-in-aim-to-cut-debt-2016-10-27).
On a more upbeat note, STMicroelectronics NV (STM) jumped 11% as
investors welcomed its outlook for the rest of the year.
Shares of Technip SA (TEC.FR) climbed 2.2% after the
oil-field-services company reported better-than-expected
earnings.
Statoil ASA (STL.OS) added 2.2%. The Norwegian oil giant said it
will cut expenses after posting a third-quarter loss
(http://www.marketwatch.com/story/statoil-to-cut-capex-spending-by-11-billion-2016-10-27).
Barclays PLC (BCS) (BCS) gained 4.8% after the U.K. lender
posted better-than-expected adjusted profit.
Economic news: The U.K. economy proved to be more resilient than
expected after the Brexit vote, with gross domestic product
expanding 0.5% in the third quarter
(http://www.marketwatch.com/story/pound-jumps-after-uk-gdp-beats-forecast-2016-10-27).
Economists had expected GDP growth of around 0.3%, which was
already higher than the forecasts published immediately after the
EU referendum in June.
The growth rate still marked a slowdown from the 0.7% recorded
in the second quarter.
"Growth of 0.5% quarter-on-quarter undeniably means that the
economy was solid (if somewhat lopsided) in the immediate aftermath
of June's Brexit vote, despite appreciable serious concern that
activity could immediately head south," said Howard Archer, chief
U.K. and European economist at IHS Global Insight, in a note.
"However, there are still major challenges for the economy ahead
-- not least when Article 50 is triggered," he added.
The pound rallied after the report, buying as much as $1.2272
compared with $1.2240 ahead of the data and the $1.2246 recorded
late Wednesday in New York. Sterling, however, quickly gave up most
of the gain to trade at $1.2156 at the time of the European market
close.
Indexes: The U.K.'s FTSE 100 index gained 0.4% to 6,986.57 as
investors digested the data and the pound move
(http://www.marketwatch.com/story/ftse-100-drops-ahead-of-uk-gdp-data-2016-10-27).
Germany's DAX 30 index added 0.1% to 10,717.08, while France's
CAC 40 ended marginally lower at 4,533.57.
(END) Dow Jones Newswires
October 27, 2016 12:04 ET (16:04 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
FTSE 100
Index Chart
From Apr 2024 to May 2024
FTSE 100
Index Chart
From May 2023 to May 2024