News Column

European shares drop after disappointing earnings

February 13, 2014

European shares dropped on Thursday after advancing over the previous six sessions on a wave of disappointing financial results by large companies. A number of European companies, including the French Bank BNP Paribas and the Swiss food group Nestle, posted lower than forecast fourth quarter earnings. Later in the day, eyes will focus on U.S. data. A report may show that retail sales were steady last month, after gaining 0.2 percent in December, while another figures may signal a fall of 330,000 jobless claims in the week ended Feb. 8 from 331,000 a week before. Meanwhile, there are some predictions central banks would hold stimulus for longer period to bolster recovery. As of 07:27 EST, STOXX EUROPE 600 slipped 0.60% to record 330.00 points. Industrials led the decline with a drop of 1.26%, where the largest losses were recorded by Rolls-Royce, after it said revenue this year would not soar due to lower demand for defense equipment, as its shares plummeted 16.03% to 1016.00 pounds. The largest gains, on the other hand, were led by Renault SA as its equities rose 6.36% to 70.07 euros.  Regarding other major European indices, Germany`s DAX 30 edged down 0.22% to 9519.28 points. France's CAC 40 index rose 0.34% to 4290.82 points, and FTSE 100 slumped 0.57% to 6636.73 points.

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Source: Financial Markets

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