European Stocks Slide as Carmakers Tumble on Collusion ReportBy
European stocks declined to the lowest level in 10 days as concern about potential antitrust collusion sent carmakers toward the worst decline in more than a year.
The Stoxx Europe 600 Index slid 1 percent at the close, as a strong euro also weighed on exporters. Carmakers fell the most in six months in the biggest retreat among industry sectors. Volkswagen AG and Daimler AG informed regulators about decades of talks among German automakers on vehicle technology that may have breached competition rules, Spiegel magazine reported.
- The euro strengthened this week, putting more pressure on the region’s companies to generate better profits at home, after European Central Bank President Mario Draghi said on Thursday that officials will reassess stimulus in autumn. His comments about “robust recovery” in the economy did little to appease stock traders.
- More than half the companies in the Euro Stoxx 50 Index report results next week, including Daimler, Deutsche Bank AG and Banco Santander SA.
- The latest European reporting season is off to a mixed start, according to JPMorgan Chase & Co. Earnings in the industrial sector have been particularly disappointing, equity strategists including Emmanuel Cau and Mislav Matejka wrote in a note.
- The Stoxx 600 fell 1.7 percent in the past five days, after posting two consecutive weekly gains.
— With assistance by Sofia Horta e Costa, and Elena Popina