Thursday 22 February 2018

European shares slip from 2-week high after some poor results

Pranab Patel, a trader at Belgian KBC bank, reacts on the trading floor at the bank headquarters in Brussels.
Pranab Patel, a trader at Belgian KBC bank, reacts on the trading floor at the bank headquarters in Brussels.

European equities edged lower in early trading on Thursday after climbing to a two-week high earlier in the session, with some disappointing company results putting pressure on the market.

The pan-European FTSEurofirst 300 index was 0.1pc lower at 1,294.42 points by 8.15am after initially rising to 1,298.16 points, its highest level since February 5. It had ended 2.7pc stronger on Wednesday following a rally in oil prices.

Food group Nestle dropped 4.3pc, the top faller in the FTSEurofirst, after saying it expected softer pricing and growth in line with last year in 2016 as full-year organic growth of 4.2pc fell short of expectations.

KBC also fell 4pc after reporting a fourth-quarter net profit below market expectations as it took an impairment on its operations in Bulgaria and Slovakia.

However, Franco-Dutch airline Air France-KLM rose 6.5pc after beating forecasts with a return to profit last year, helped by a drop in the fuel bill and growth in passenger traffic.

Capgemini also rose 4.6pc after the French information technology services company reported a 20pc rise in full-year operating profit and predicted a wider operating margin for 2016.

Reuters

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