European shares are lower again in the early afternoon Thursday, as investors, already downbeat on US rate rise concerns, were hit with numerous disappointing earnings results, that worked to further weigh on the tone across Europe.
By around 1245 BST, the EUROSTOXX 600 had lost 0.94%, while the EUROSTOXX 50 was 1% in the red. Regional bourses fared similarly. The German DAX was 1.48% lower, the French CAC was down 0.97% and the Spanish IBEX was 0.94% in negative territory.
Earnings, company news disappoints
A number of earnings releases were made earlier Thursday, which served to push indices into the red.
British advertiser WPP shares sank 13.27% to trade at £1,209.00. The group said full year like-for-like 2017 revenues fell, in what was “not a pretty year” for the business.
Online fashion retailer’s Zalando shares slid 5.33% to €44.40 after its expansion plans weren’t well received by investors.
French retailer Carrefour shares were also in the red, after the world’s second largest retailer announced a net loss across 2017. Carrefour shares sank 5.83% to hit €17.84.
Those – and other – disappointing reports added to the already uncertain mood pervading investors in the wake of US Fed Chairman Jerome Powell’s ‘hawkish’ testimony earlier in the week.
The possibility that US interest rates could rise more quickly during 2018 than had been previously anticipated, is making bond yields more attractive and stock market investments, less so, for some.
Some stocks move into the green
Despite the generally downbeat feel across European markets, there were some share risers, Thursday.
Shares in brewing and drinks business Anheuser Busch Inbev were 3.66% higher at €90.68 after reporting a better-than-expected Q4 profit, boosted by a rebound in the Brazil drinks market. The firm also said it made some savings on its 2016 SABMiller purchase.
Eyewear lenses-maker Essilor shares were also higher, rising 4.17% to €112.35. Meanwhile, CRH shares were 2.87% in the green at £2,471.00.