FX & CFD trading involves significant risk
European stocks fell, paring the Stoxx Europe 600 Index’s fifth straight monthly gain, as ArcelorMittal and BG Group Plc reported disappointing results and euro-area governments pressured Greece to increase spending cuts in return for aid.
Euro-area governments pressed Greece to make deeper spending cuts to keep aid flowing. With Greece pleading for a 31 billion-euro ($40 billion) aid payout in November and facing a sixth year of recession in 2013, euro finance ministers said unfreezing loans for the country required more efforts in Athens to rein in the budget deficit and deregulate the economy.
National benchmark indexes fell in 15 of the 18 western- European markets. The U.K.’s FTSE 100 lost 1.2 percent, France’s CAC 40 slid 0.9 percent and Germany’s DAX slipped 0.3 percent.
ArcelorMittal lost 6.4 percent to 11.43 euros after it said earnings before interest, taxes, depreciation and amortization dropped 44 percent to $1.34 billion, in line with the median analyst estimate of $1.3 billion. The steelmaker also cut its 2013 dividend to save $1 billion as slowing Asian demand drags down prices and it attempts to cut debt. Next year’s payout will drop to 20 cents a share from the 75 cents planned for 2012.
Air France jumped 8.4 percent to 6.45 euros. Europe’s largest airline reported a 27 percent increase in third-quarter operating profit to 506 million euros as job cuts and improved summer traffic offset higher fuel costs. Analysts had predicted earnings of 434 million euros, based on the average of nine estimates.
Lufthansa rose 7.3 percent to 11.79 euros after Europe’s second-biggest airline posted a 6.2 percent increase in third- quarter operating profit to 648 million euros as a cost-savings program helped boost earnings. Analysts had estimated earnings of 522 million euros, based on nine estimates.
Fiat Industrial SpA climbed 3 percent to 8.36 euros. The truck and tractor manufacturer raised its 2012 sales target after reporting a 19 percent increase in third-quarter earnings before interest, taxes and one-time gains to 575 million euros. That beat the 505 million-euro average analyst estimate, amid higher demand for CNH farm equipment.
All posted material is a marketing communication solely for informational purposes and reliance on this may lead to loss. Past performance is not a reliable indicator of future results. Please read our full disclaimer.