News Column

European Stocks End Brutal Week With Another Drubbing

August 1, 2014

BRUSSELS (Alliance News) - European stocks were clobbered for a third straight session on Friday, with global markets spooked by geopolitical tensions and concerns about the European banking system.

News about Argentina missing a debt repayment deadline also weighed on sentiment.

A mixed US jobs report gave investors little reason to go hunting for bargains after big losses in the previous sessions.

The Euro Stoxx 50 index of eurozone bluechip stocks plunged 1.39%, for a weekly loss of 3.24%.

The German DAX dropped 2% today. The French CAC 40 slipped 1% and the FTSE of the UK fell 0.83%.

Adidas slipped 1.5%, following negative broker recommendations. Shares were hammered this week as investors were surprised by a profit warning from the company.

ArcelorMittal lost 5.8%. The steel giant cut its profit forecast for the year, citing lower-than-expected prices.

Arkema is plunged 24%. The firm said its second-quarter performance was below expectations due to lower than expected volumes in acrylics as well as a number of specific elements in polyamides. The company now expects to achieve its mid-term targets in 2017, and not in 2016 as planned.

Hedge-fund operator Man Group reported a decline in first-half profit, as revenues fell from last year. The stock lost 2%.

Rexam was down fractionally. The beverage can maker reported higher first-half profit, despite 5% decrease in sales. The board also declared a higher interim dividend.

Iliad SA retreated 7.8% after offering USD15 billion for a controlling stake in T-Mobile US Inc.

Vinci tumbled after Europe's biggest builder reported first-half earnings before interest and taxes were below estimates.

Belgacom SA gained 5.6% after raising its full-year earnings outlook.

In economic news, Eurozone manufacturing activity growth remained stable at June's seven-month low, final data from Markit Economics showed.

The final seasonally adjusted manufacturing Purchasing Managers' Index came in at 51.8 in July, unchanged from June. The flash score for July was 51.9.

U.K 's manufacturing activity expanded at a slower than expected rate in July as growth in output and new orders slowed, the results of a survey by Markit Economics and the Chartered Institute of Purchasing and Logistics, or CIPS, showed.

Meanwhile, the manufacturing sector in China expanded at an accelerated pace in July, the latest PMI from HSBC and Markit Economics revealed - coming in with an 18-month high score of 51.7. That's actually lower than last week's flash estimate score of 52, which is what analysts were expecting.

From the US, 209,000 jobs were added in July. The consensus estimate called for an addition of 233,000 jobs after non-farm payrolls expanded by 288,000 in the previous month.

Meanwhile, unemployment edged up to a seasonally adjusted 6.2% in May, compared to 6.1% in the previous month.

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Source: Alliance News

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