Dixon Carphone shares plunge on results
Gains by cyclical sectors helped push European stocks higher on Thursday while heavy losses in Dixons Carphone after a profit warning dominated trading.
The pan-European STOXX 600 was up 0.2pc at its close. CRH led Irish gainers after announcing a US exit and German acquisition.
Dixons Carphone shares plummeted as much as 29pc after the mobile phone retailer downgraded expectations for full-year profit, reflecting tougher conditions in the mobile market as customers hold on to handsets for longer.
In general this quarter has seen investors harshly punish companies that missed expectations, a trend which analysts put down to slowing macroeconomic momentum.
"Expectations caught up with what have been solid fundamentals and we are at a juncture now where some macro indicators have shown signs of topping out," Carr said, pointing to dollar weakness as another headwind to European earnings.
British sub-prime lender Provident Financial added to a recovery from its sharp falls earlier in the week, jumping 13.2pc. The dollar rebounded, helped by better-than-expected US initial jobless claims, which rose 2,000 to a seasonally adjusted 234,000 for the week ended August 19.
The greenback has dropped 14pc against the euro this year, driven by dashed expectations for tax cuts and other pro-growth plans by the Trump administration, which has weakened the case for further pro-dollar rises in US interest rates.
Sterling was flat at $1.2774, its weakest since June 27. Against the euro it stabilised below a near ten-and-a-half month low of 92.37 pence hit on Wednesday. (Reuters)