European Stocks Little Changed Amid Mixed Earnings; Miners SlumpNamitha Jagadeesh and Roxana Zega
European stocks fell with miners and auto-related shares, extending their first weekly drop in three, as data around the world signaled worsening economic conditions.
Antofagasta Plc and Glencore Plc slipped at least 4.5 percent as commodity producers extended a rout. Volkswagen AG slid 2.7 percent, pacing losses among carmakers, after Manager Magazin said a drop in its Chinese deliveries could hurt earnings by more than 1 billion euros ($1.1 billion). BASF SE declined 4.6 percent after its earnings trailed projections.
The Stoxx Europe 600 Index dropped 0.9 percent to 394.64 at the close of trading, reversing intraday gains of 0.5 percent. A report showed U.S. new-home sales unexpectedly fell in June. Data earlier showed a surprise weakening in Chinese manufacturing, while euro-area output missed projections.
“The news flow has been on the downside,” said Ralf Zimmerman, a strategist at Bankhaus Lampe KG in Dusseldorf, Germany. “We had weak Chinese PMIs and declining PMIs in Europe, soft figures on the corporate front. We need more positive global news or else the downwards move in market will persist.”
The Stoxx 600 fell for a fourth day, taking its weekly retreat to 2.7 percent. Commodity producers fell the most among industry groups during the period.
Among other shares moving on corporate news, Aggreko Plc tumbled 12 percent after saying it expects full-year profit to fall short of estimates.
Lonmin Plc slumped 17 percent on concern it will need to raise funds after saying it may cut as many as 6,000 jobs. Diageo Plc dropped 2.5 percent after saying the U.S. Securities and Exchange Commission is looking into its distribution practices there.
Vodafone Group Plc climbed 2.8 percent after service revenue increased more than projected. Thales SA surged to the highest price since 1998 after first-half sales beat estimates.
(An earlier version incorrectly stated a U.S. housing report was due at 8:30 a.m. in Washington instead of 10 a.m.)
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.
- Morgan Stanley Says Stock Slide Was Appetizer for Real Deal
- U.S. Stocks Fall With Treasuries, Dollar Climbs: Markets Wrap
- U.S. Pays Up to Auction $179 Billion of Debt in a Span of Hours
- Florida Teachers’ Pension Fund Invested in Maker of School Massacre Gun
- ‘No Cash’ Signs Everywhere Has Sweden Worried It’s Gone Too Far