European shares were subdued again Friday, extending Thursday’s weaker tone. Investors were cautious following confirmation the US corporate tax reforms would be delayed by one year.
Some disappointing earnings reports and likely profit-taking, also added to the reduced appetite.
By around 1130 BST, the EUROSTOXX 600 was trading 0.2% lower, as was the EUROSTOXX 50.
The German Dax was barely changed – up from a steeper loss near the open. Meanwhile, the French CAC and Spanish IBEX were both 0.3% in the red.
Italian defence tech company Leonardo was among the biggest losers, with a 20% share price fall Friday. Investors were spooked after the firm cut its 2017 guidance.
A 10% fall was experienced by Swedish medical equipment company, Elekta. Investors sold the stock after the firm announced the delay of a new product.
Shares in Siemens, the German engineering company, meanwhile, declined 0.5%. That was due to disappointing results Thursday, which led to a price target cut by analysts.
As always, there weren’t only red share prices lighting up the indices, Friday.
Among the gainers helping to minimise index losses were:
- Shares in French-based utilities company Spie, rose 6.8% on a positive earnings report.
- Allianz shares, meanwhile, gained 1.25%. The German financial services company reported results in line with expectations, including its guidance details.
US tax reform, profit-taking
Other developments weighing on European indices, included the confirmed delay to the reform of US corporate tax rules. The US Senate said Thursday that while reforms would happen, markets and companies would just have to wait a little longer than previously anticipated.
Meanwhile, the recent positive run also means that many investors are working to take any profits made on the stock market.
Add that to the other key details Friday and there’s a chance that European shares could end the week with the worst performance for some time, some analysts suggest.