😎 Summer Sale Exclusive - Up to 50% off AI-powered stock picks by InvestingProCLAIM SALE

UPDATE 2-String of weak earnings leave European stocks barely up on the week

Published 18-10-2019, 10:40 pm
© Reuters.  UPDATE 2-String of weak earnings leave European stocks barely up on the week

(For a live blog on European stocks, type LIVE/ in an Eikon news window)

* Renault top loser on STOXX 600 after results

* Danone tumbles after narrowing sales growth outlook

* UK parliament to vote on new Brexit deal on Saturday (Updates to market close)

By Sruthi Shankar

Oct 18 (Reuters) - Gloomy earnings reports from French carmaker Renault and food group Danone drove European shares lower on Friday, rounding off a tumultuous week that left investors waiting anxiously for the next twist in the Brexit saga.

The pan-European STOXX 600 index .STOXX finished 0.3% lower and Paris-listed shares .FCHI lagged the most with a 0.65% decline, hit by weak quarterly results.

Renault RENA.PA dropped 11.5% to become the biggest decliner on the STOXX 600, after the company cut its full-year revenue and profit forecast, the latest to suffer in an auto market downturn. warning pushed the wider auto and auto parts index .SXAP to its biggest percentage drop in two-and-a-half weeks, with added pressure from Sweden's Volvo AB VOLVb.ST forecasting a demand slump on both sides of the North Atlantic next year. shares settled up 2.4% after falling as much as 5% as investors chose to focus on its forecast-beating earnings.

The biggest drag on the main index was an 8.4% decline the shares of Danone DANO.PA after the world's biggest yoghurt maker cut its 2019 sales growth, dragging Europe's food & beverage index down .SX3P down 1.4% losses pulled the STOXX 600 lower for a third straight session to end flat on a week dominated by Brexit headlines.

Boris Johnson struck a Brexit deal with the European Union on Thursday, sending the benchmark index to its highest in more than a year, but concerns remain about the deal getting through the British parliament.

"Whatever happens at the weekend it is unlikely to be the end of this saga," Michael Hewson, chief market analyst at CMC (NS:CMC) Markets, said.

"However, if MPs do hold their noses and vote for the deal, at least we can move on to phase 2 which is negotiating the new relationship over the next 14 month transition period."

After a solid increase in the first quarter, gains in the STOXX 600 index have tapered off in the second and third. Fresh data on Friday showed China's economic growth slowed more than expected in the third quarter. focus now turns to the third-quarter earnings season, which kicks off in earnest next week. An earnings recession in Europe is expected to deepen in the third quarter, according to IBES data from Refinitiv.

Thales TCFP.PA , the largest European defence electronics company, dropped 5.4% after lowering its 2019 revenue growth forecast, but a strong report from Swedish medical technology group Getinge GETIb.ST sent its shares jumping 16%. Stock Exchange LSE.L rose 0.8% after reporting a higher-than-expected third-quarter income ahead of the planned shareholder vote on its deal to buy data provider Refinitiv. in AMS AMS.S fell nearly 5% after Bloomberg reported the Austrian sensor maker was planning to discuss a renewed bid for Osram OSRn.DE following the failure of its first attempt. shares .FTSE were dragged lower by Holiday Inn-owner InterContinental Hotels Group IHG.L , which fell 4.6% after reporting a fall in third-quarter revenue per room.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.