There are no comments.
The headquarters of RWE is seen in Essen. The German utility’s shares fell 9.6% yesterday after warning that it would only barely reach its full-year net profit target.
Reuters
London
A top European stock index posted its biggest fall in six weeks yesterday, as weakness in US equities and commodity prices combined with poor earnings updates to drag shares lower.
The pan-European FTSEurofirst 300 index was down 1.6% at 1,470.05 points by the close, posting its biggest daily decline since September 28.
The index weakened with Wall Street after jobs data supported the view that the US Federal Reserve could raise rates in December.
Weaker-than-expected earnings reports in Europe included another profit warning from Rolls-Royce, which sent the British engine maker’s shares skidding 19.6% - their biggest one-day percentage drop in 15 years.
Commodity stocks were the biggest fallers by sector, with basic resources firms down 4.2% and energy firms down 3.1%.
A strong dollar and concerns about oversupply sent copper to a six-year low, while an Opec report that a market surplus in oil would persist sent the price of Brent lower.
“Combine plentiful supply with a strong-dollar view, and commodity prices will struggle,” said Chris Faulkner MacDonagh, global markets strategist at Standard Life.
“Even if there are pockets of value in the energy or commodities space, they can stay cheap for quite a while, and we have yet to see that positive catalyst.”
Rolls-Royce downgraded its profit forecast for 2016, its fourth profit warning in just over a year. It blamed sharply weaker demand for spares and services to existing aero-engines.
“Yet another profit warning has shocked investors, with a review of its current shareholder payments policy a major negative,” said Keith Bowman, analyst at Hargreaves Lansdown.
“Additional headwinds for selected aerospace and offshore marine markets have been flagged, including sharply lower volumes of corporate jets and ongoing difficulties for its oil-impacted Marine business.”
German utility RWE fell 9.6% after warning it would only barely reach its full-year net profit target, while Dutch insurer Aegon missed forecasts with its loss, and dropped 11.1%.
The third-quarter earnings season in Europe is drawing to a close. According to Thomson Reuters StarMine data, 84% of companies in the STOXX Europe 600 index have announced third-quarter results so far, of which 51% have met or beaten analysts’ forecasts. On the revenue front, only 47% of companies have met or surpassed expectations.
Shares in BAE Systems rose 3.8% after sources told Reuters that it would sell its less profitable operations, boosting the stock despite the defence firm seeing flat earnings for 2015.
There are no comments.
Saying goodbye is never easy, especially when you are saying farewell to those that have left a positive impression. That was the case earlier this month when Canada hosted Mexico in a friendly at BC Place stadium in Vancouver.
Some 60mn primary-school-age children have no access to formal education
Lekhwiya’s El Arabi scores the equaliser after Tresor is sent off; Tabata, al-Harazi score for QSL champions
The Yemeni Minister of Tourism, Dr Mohamed Abdul Majid Qubati, yesterday expressed hope that the 48-hour ceasefire in Yemen declared by the Command of Coalition Forces on Saturday will be maintained in order to lift the siege imposed on Taz City and ease the entry of humanitarian aid to the besieged
Some 200 teachers from schools across the country attended Qatar Museum’s (QM) first ever Teachers Council at the Museum of Islamic Art (MIA) yesterday.
The Supreme Judiciary Council (SJC) of Qatar and the Indonesian Supreme Court (SCI) have signed a Memorandum of Understanding (MoU) on judicial co-operation, it was announced yesterday.
Sri Lanka is keen on importing liquefied natural gas (LNG) from Qatar as part of government policy to shift to clean energy, Minister of City Planning and Water Supply Rauff Hakeem has said.