Euro shares dip as Reckitt misses forecast
European shares dipped in choppy trade yesterday as a poor update from Reckitt Benckiser hit consumer staples, though steelmakers rose after the United States outlined proposals for hefty import curbs.
Shares in Tenaris and Outokumpu - which have facilities in the United States - were the biggest gainers in Europe, up 3pc and 4.5pc respectively.
Their gains and an early rise in financial stocks helped STOXX 600 post small gains at the open but the pan-European benchmark index was later dragged lower by a fall in consumer staple stocks. The index was down 0.6pc at its close.
Yesterday's decline took place after the STOXX posted a 3.3pc gain last week when strength in corporate updates and a return of inflows into equity funds helped global equities rebound from a turbulent start to the month.
The index needs to rise around 7pc to climb back to the 30-month peak hit at the end of January. Reckitt Benckiser, which makes Durex condoms and other well-known brands, missed profit expectations and its profit margins declined, hurt by a tougher pricing environment in developed markets and increased commodity costs. It said these issues would continue in the near term.
Its shares fell 7.5pc, dragging down other consumer goods companies.
Ireland's ISEQ Overall Index fell 0.52pc to 6,797.74.
Shares in ferry operator Irish Continental dipped 0.8pc after Davy downgraded the stock to neutral, saying it was now fairly valued. Recruitment firm CPL Resources declined 1.6pc to €6.20, while Green REIT, which has results out this morning, advanced 1.2pc to €1.53.
The UK's FTSE-100 fell 0.6pc. France's CAC-40 was 0.5pc lower. Germany's DAX fell 0.53pc.