- Energy, miners, banks are worst-performing industry groups
- Shares of Syngenta and Kuoni advance amid deal activity
European stocks declined as oil deepened a drop and investors weighed earnings from companies including BP Plc and UBS Group AG.
Energy shares, miners and banks led declines in the Stoxx Europe 600 Index. BP slid 8.7 percent after its quarterly earnings sank 91 percent, missing estimates. UBS lost 6.8 percent after profit slumped at its wealth-management and investment-bank units.
“Oil prices are down and earnings in some particular sectors look rough,” said Jasper Lawler, a London-based market analyst at CMC Markets Plc. “This creates some weak sentiment. There was a hope the banks could lead this earnings season and that hasn’t happened.”
The Stoxx 600 lost 2.1 percent at the close of trading. Anxiety about global growth has returned, after a two-week halt to the market selloff sparked by China’s slowdown and an oil rout. While central-bank optimism tempered losses toward the end of last month, the benchmark still had its worst start to a year since the financial crisis.
Among stocks moving on earnings releases, Alfa Laval AB tumbled 11 percent after its fourth-quarter pretax profit missed analysts’ projections. Ferrari NV plunged 9.6 percent after its forecast for annual vehicle shipments signaled a slowdown in sales growth. Infineon Technologies AG dropped 5.8 percent after its gross margin declined.
Some 90 companies report results this week, with analysts estimating profit at Stoxx 600 firms grew 0.7 percent last year, and will increase 3.9 percent in 2016.
While a gauge of lenders, among this year’s worst performers, fell to its lowest level since 2012, some bucked the trend. Danske Bank A/S gained 4.1 percent after announcing a share buyback plan that’s almost double its previous program, while Raiffeisen Bank International AG gained 4.9 percent after reporting a higher profit than it had forecast.
Some stocks were active on deal activity. Syngenta AG added 3.7 percent after people familiar with the matter said China National Chemical Corp. is nearing an agreement to buy the Swiss pesticide maker.
Kuoni Reisen Holding AG surged 17 percent after agreeing to a 1.39 billion-franc ($1.4 billion) offer from Swedish buyout firm EQT Partners AB. J Sainsbury Plc rose 2.4 percent after saying it will buy Home Retail Group Plc for about 1.3 billion pounds ($1.9 billion).
Anglo American Plc and BHP Billiton Ltd. dragged miners lower, dropping at least 6.7 percent, while Tullow Oil Plc paced losses in energy shares after Liberum Capital cut its rating on the shares to hold from buy.