Thursday 14 December 2017

European stocks dragged lower

BMW profits missed analyst's predictions.
BMW profits missed analyst's predictions.

Bloomberg/Colm Kelpie

European stocks capped their worst three-day decline since February as miners plunged and lenders fell on earnings reports.

By the close in Dublin, the ISEQ Overall Index was down 1.94pc, or 119.25 points, to end the trading day at 6,042.16.

The leaders on the Dublin market included speciality baker Aryzta, which increased 1.2pc to €34.46, while drinks group C&C rose 0.7pc to €3.95.

On the other side of the board, the laggards included packaging giant Smurfit Kappa, which fell 2.3pc to €22.62, while Ryanair fell 2.8pc to €12.81.

Elsewhere, the Stoxx Europe 600 Index slipped 1.7pc at the close of trading, as all 19 industry groups fell.

Shares have lost momentum after rallying to a three-month high on April 20.

The region's benchmark has extended losses after its biggest weekly decline since February.

UBS Group and Commerzbank lost at least 7.5pc after their quarterly earnings tumbled. Miners slumped the most in almost two months, with Anglo American and Glencore down more than 8pc, on concern sluggish global manufacturing data indicates weaker demand for metals.

BMW led carmakers lower after its profit missed analysts' predictions.

"What markets need most right now is to see better numbers from the economic indicators in Europe and a better view from companies on their future earnings," said Heinz-Gerd Sonnenschein, a strategist at Deutsche Postbank in Bonn, Germany.

Investors have focused on financial results for stock cues in recent weeks. Analysts have slashed profit projections for Stoxx 600 firms this year, reversing earlier calls for growth to forecast a decline.

Irish Independent

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