FX & CFD trading involves significant risk
European stocks declined as investors weighed earnings reports by companies from BASF SE to Michelin (ML)& Cie. and Roche Holding AG. U.S. stock-index futures and Asian shares also fell.
The Stoxx Europe 600 Index fell 0.3 percent to 300.34 at 9:42 a.m. in London, after initially sliding as much as 0.3 percent. The benchmark rose to an almost eight-week high yesterday as data signaled Germany is leading a revival in euro-area manufacturing and companies posted results that exceeded estimates.
German business confidence rose for a third month in July, data released today showed. The Ifo institute’s business climate index, based on a survey of 7,000 executives, rose to 106.2 this month from 105.9 in June. Economists in had predicted an increase to 106.3.
BASF dropped 4.4 percent to 66.77 euros. Second-quarter earnings before interest, tax and one-time items fell 5.4 percent to 1.83 billion euros ($2.42 billion), the company said. The average estimate of analysts called for 1.99 billion euros.
ABB Ltd. (ABBN) lost 4 percent 20.59 Swiss francs, its biggest retreat in 13 months. The world’s largest maker of power transformers reported an increase in profit for the first time in six quarters. Net income rose 16 percent to $763 million in the second quarter. The average estimate of analysts was for $779 million. Sales rose 6 percent, meeting predictions.
Michelin declined 4.9 percent to 73.12 euros, its biggest drop since Feb. 12. Europe’s largest tiremaker reported a 13 percent decline in first-half profit as slumping auto markets in its home region sapped demand and sales of tires for earthmovers dropped. Operating profit excluding one-time items declined to 1.15 billion euros from 1.32 billion euros a year earlier. The figure compared with the 1.12 billion-euro average estimate.
FTSE 100 6,551.37 -69.06 -1.04%
CAC 40 3,925.54 -37.21 -0.94%
DAX 8,280.08 -99.03 -1.18%
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.