European Stocks Drop in an End to Longest Rally in 19 Monthsby
Declines in banks and miners sent European stocks lower for the first time in eight days, while investors also assessed disappointing corporate outlooks.
The Stoxx Europe 600 Index lost 0.4 percent at the close. Nestle SA, Cobham Plc and NN Group NV were among shares that declined after their earnings updates. The equity benchmark yesterday extended a one-year high, buoyed by expectations of higher borrowing costs in the U.S. as well as higher inflation globally.
- Stoxx 600 miners fell from their highest level since 2014, tracking declines in copper prices. Lenders halted a three-day winning streak.
- Cobham was the biggest loser on the Stoxx 600, down 15 percent, after announcing a 150 million-pound ($188 million) hit against cost overruns on a Boeing Co. aerial tanker, among other charges and write-downs, and failed to provide a clear outlook for 2017.
- NN Group, the Dutch insurer buying competitor Delta Lloyd NV, fell 7.6 percent after reporting that fourth-quarter profit declined by almost 60 percent. Nestle lost 1 percent after Chief Executive Officer Mark Schneider said it will take years to return to the growth rates targeted by his predecessors.
- “Whilst in the short-term markets are residing in overbought territory and are vulnerable to rounds of profit-taking, overall sentiment remains positive with no obvious reason at this stage why the move to the upside should come to halt any time soon,” City of London Markets trader Markus Huber wrote in a note.
- AstraZeneca Plc, BP Plc and three other firms on the Stoxx 600 traded without the right to dividend on Thursday, shaving 0.3 point off the benchmark.