CRH drops as construction takes hit
EUROPEAN shares swung back into the red yesterday as fears of rising rates and disappointing earnings from US industrials dragged Wall Street down, while HeidelbergCement's profit warning sank European construction stocks.
Ireland's CRH down 4.4pc was among the movers. The biggest earnings disappointment was HeidelbergCement, one of the world's largest cement makers, which fell 8.6pc after it cut its profit guidance for 2018, citing bad weather in the United States and higher-than-expected energy cost inflation.
Other European construction materials firms tumbled too: Buzzi Unicem fell 6.4pc, and LafargeHolcim fell 3.9pc.
The eurozone's leading stocks index attempted a recovery but finished the day down 1pc while the pan-European STOXX 600 index slipped 0.5pc and Germany's DAX slid 1.1pc.
A weaker opening on Wall Street sent European stocks south. US stocks fell across the board as weak earnings reports from industrial firms triggered worries over climbing costs and the impact of tariffs.
Meanwhile, Europe's third-quarter earnings season is kicking up a gear after indexes hit a 22-month low last week when jitters over rising US bond yields and geopolitical worries rattled global markets.
Spanish banks Banco Sabadell, Bankinter, Bankia, Caixabank, BBVA, and Santander all fell between 2pc and 6.7pc after a court ruling banks must pay stamp duty on mortgage loans, potentially costing them billions of euro in compensation.
Media performed better, lifted by French advertising agency Publicis sales data.