European shares are lower Thursday, as investors lock in previous gains and as earnings updates disappoint. Miners are also dragging indices down as metals prices are lower amid concerns over the future of Chinese economic growth.
By 1350 BST, the EUROSTOXX 600 was down 0.11% while the EUROSTOXX 50 lost 0.23%. Regional bourses were also negative. The German DAX was 0.42% in the red, the French CAC fell 0.40% and the Spanish IBEX was 0.32% lower.
Company earning updates disappoint
As investors worked to secure gains made from the previous sessions’ one-month high, a number of earnings updates disappointed, exacerbating the negative tone.
French media group Publicis shares slid 7.92% to hit €53.68 after reporting a decline in its Q2 sales performance. The largely unexpected decline was driven by weakness at its US healthcare communications business, the firm said.
That also weighed on shares of competitor WPP PLC, which declined 3.23%.
Ryanair shares were also lower after announcing the cancellation of 600 European flights due to Cabin Crew strikes in Portugal, Spain and Belgium. Ryanair shares fell 0.66% to trade at €15.83.
Anglo American shares also stumbled following its Q2 update. The stock was 3.33% lower at £1,634.77.
Also in the red were Dormakaba shares. The Swiss lock maker warned on profits and also postponed its targets by two years. Dormakaba shares fell 15.82% to hit CHF622.50.
China growth worries
Adding to the negative tone were ongoing concerns over the outlook for Chinese economic growth. The country reported its Q2 GDP figures earlier this week, which showed a slower pace of growth than in Q1.
However, concern over whether or not that pace will pick up, or even remain at a level consistent with demand for the raw goods associated with a country with super strong growth as it’s infrastructure expands, remained in place, Thursday.
Those worries drove down the price of metals which hit miner stocks across the European indices.