EUROPE MARKETS: Europe's Markets Struggle Against Downbeat Earnings, Economic News
February 21 2019 - 10:29AM
Dow Jones News
By Emily Horton
Centrica, BAE Systems, AP Moeller Maersk fall on earnings
Europe's markets were mixed on Thursday, struggling against a
myriad of headwinds including weak economic data and earnings.
A batch of earnings data also drove action for a number of
stocks, and leaned on some indexes.
How are markets performing?
The Stoxx Europe 600 lost 0.2% to 370.75 on Thursday, after
finishing up 0.7% on Wednesday.
The FTSE 100 led the region's top decliners falling 0.9% to
7,180.85, pulled down by poorly received results from U.K.
heavyweights Centrica PLC (CNA.LN) and BAE Systems PLC (BA.LN)
Italy's FTSE MIB index was next, dropping by 0.3% to 20,247.76,
while France's CAC 40 remained flat at 5,194.58.
Spain's IBEX 35 gained 0.1% to 9,188.80 and the German DAX (DAX)
rose by 0.3% to 11,431.
The euro remained flat on Thursday, at $1.1334, while the pound
climbed to $1.3066 from $1.3052 late in New York on Wednesday.
What's driving the markets?
Business surveys released Thursday showed the eurozone's
manufacturing sector entered its first downturn since mid-2013, led
by Germany. A batch of U.S. data was also released, which included
weak durable goods orders
(http://www.marketwatch.com/story/autos-planes-boost-durable-goods-orders-in-december-but-everything-else-is-weak-2019-02-21)and
the Philly Fed manufacturing index that slid into negative
territory
(http://www.marketwatch.com/story/philly-fed-manufacturing-index-slumps-into-negative-territory-in-february-2019-02-21).
Investors were reviewing a mixed bag of signals on Thursday,
from fresh optimism over a trade truce between the U.S. and China,
to minutes from the Federal Reserve that indicated a slightly
higher chance of a rate increase this year than investors had
anticipated.
What stocks are active?
Centrica PLC (CNA.LN) slumped by 12%, after the FTSE 100 energy
company warned it will struggle to reach cash flow targets in 2019
owing to exceptional charges
(http://www.marketwatch.com/story/centrica-profit-rises-sells-clockwork-for-300m-2019-02-21).
Although the company met its target for 2018, chief executive Iain
Conn warned 2019 would be a challenge.
A.P. Moeller-Maersk A/S (MAERSK-B.KO) fell by 7%, after its
fourth quarter profit missed expectations
(http://www.marketwatch.com/story/maersk-to-list-drilling-unit-as-profit-disappoints-2019-02-21),
a drop chief executive Soren Skou put down to "a challenging start
to 2018". The world's largest container shipping company acts as a
global gauge for trade, at a time when the U.S. and China trade
negotiations are on going.
Shares of U.K. defence company BAE Systems PLC (BA.LN) dropped
by 7%, despite reporting a 14% profit increase, after the weapons
maker said that Germany's band on selling arms to Saudi Arabia
could prove "difficult" for the company in the long run, City AM
reported
(http://www.cityam.com/273591/bae-systems-profits-up-despite-mixed-full-year-results).
Barclays PLC (BCS), whose profits rose by a quarter in 2018
(http://www.marketwatch.com/story/barclays-profit-falls-short-but-backs-targets-2019-02-21),
added 0.4%. The U.K. bank booked group pre-tax profits of GBP3.49
billion last year, while revenues were flat. Analysts at Jefferies
described the figures as "a bit dull but possibly good enough."
(END) Dow Jones Newswires
February 21, 2019 10:14 ET (15:14 GMT)
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