European stocks retreated for a third day as companies including Carlsberg A/S missed earnings estimates and European Central Bank President Mario Draghi said he sees risks to the euro area’s recovery.
Draghi said that while he expects economic weakness at the beginning of the year to be followed by a “very gradual” recovery later in 2013, risks remain to the economic outlook for the euro region. “They relate to the possibility of weaker than expected domestic demand and exports, slow implementation of structural reforms in the euro area, as well as geopolitical issues and imbalances in major industrialised countries,” he told lawmakers in the European Parliament in Brussels. “These factors have the potential to dampen the ongoing improvement in confidence and thereby delay the recovery.”
Global finance chiefs signaled Japan has scope to keep stimulating its economy as long as policy makers cease publicly advocating a sliding yen. The message was delivered at weekend talks of finance ministers and central bankers from the Group of 20 in Moscow.
National benchmark index fell in 14 of the 18 western- European markets. France’s CAC 40 added 0.2 percent, while the U.K.’s FTSE 100 slipped 0.2 percent. Germany’s DAX gained 0.5 percent.
Carlsberg tumbled 5.8 percent to 567.50 kroner. Fourth- quarter earnings advanced to 2.15 billion kroner ($384 million) from 1.83 billion kroner in the same period a year earlier, Carlsberg said. That compares with the 2.28 billion-kroner median estimate of analysts. The Danish owner of Russia’s biggest brewer forecast annual earnings before interest, tax and some one-time items will be about 10 billion kroner. It reported profit on the same basis of 9.8 billion kroner for 2012.
Natixis jumped 22 percent to 3.48 euros after the investment-banking unit of France’s second-largest lender by branches said it will make a payment to shareholders after selling back stakes in its parent’s banking networks. Natixis plans to sell holdings valued at 12.1 billion euros to French regional lenders Banques Populaires and Caisses d’Epargne, which jointly form its parent, Groupe BPCE.
The main European stock indices are down a third straight session. The reason for today's pessimism was not satisfactory corporate reporting companies such as Carlsberg and TNT Express NV, as well as reducing the euro area balance of payments surplus for the end of December to the level of 13.900 billion euros, compared with 15.900 billion in the previous month.
FTSE 100 6,323.66 -4.60 -0.07%
DAX 7,604.79 +11.28 +0.15%
CAC 3,651.56 -9.26 -0.25%
Shares of the Danish brewing company Carlsberg fell 5% on the information that the operating profit of the company in the last quarter rose to 2.15 billion Danish crowns ($ 385 million) from 1.83 billion kronor a year earlier, with the market forecast called for earnings of 2 28 billion crowns.
The market value of the Dutch logistics company TNT has decreased by 1.2%. The company's revenue in the 4th quarter was 1.86 billion euros, while the market is predicted 1.89 billion euros and operating profit fell to 47 million euros from 58 million euros in the same period a year earlier. In addition, TNT said it expects difficulties in 2013 and falling profitability in Europe.
Course papers Spanish bank Banco Santander SA fell 1.2%.
Share prices of mining Rio Tinto Plc lost 1.2% on the London Stock Exchange.
Asian stocks fell, with Japan’s Topix Index snapping the longest weekly winning streak in 40 years, as the yen rose and profit reports from Trend Micro Inc. and Rio Tinto Group disappointed investors.
Nikkei 225 11,173.83 -133.45 -1.18%
Hang Seng 23,444.56 +31.31 +0.13%
S&P/ASX 200 5,033.92 -2.96 -0.06%
Shanghai Composite Closed
Rio Tinto declined 2.7 percent in Sydney after the miner reported its biggest loss in at least 15 years.
Trend Micro tumbled 6.1 percent after the Japanese anti-virus software maker’s net income fell 23 percent.
Auckland International Airport Ltd. slumped the most in four years after a New Zealand pension fund reduced its stake in the nation’s busiest terminal.
European stocks were little changed as companies from PPR SA to Aker Solutions ASA reported earnings and finance ministers and central bankers from the Group of 20 nations met in Moscow.
PPR surged to an 11-year high after the French owner of Gucci reported profit that topped estimates.
The Stoxx Europe 600 Index slipped 0.2 percent to 287.34 at the close of trade in London.
A report showed American consumer confidence increased more than estimated this month. The Thomson Reuters/University of Michigan preliminary February index of sentiment rose to 76.3 from 73.8 the prior month. The gauge was projected to rise to 74.8, according to the median forecast.
National benchmark indexes rose in eight of the 18 western- European markets today.
FTSE 100 6,328.26 +0.90 +0.01% CAC 40 3,660.37 -9.23 -0.25% DAX 7,593.51 -37.68 -0.49%
PPR jumped 7.6 percent to 172 euros, the highest price since July 2001. The company’s so-called recurring operating income climbed 19 percent to 1.79 billion euros. The average estimate analysts called for 1.75 billion euros. The company said it expects its performance to improve further in 2013.
Eni SpA rose 2.1 percent to 17.69 euros. Italy’s biggest oil company proposed a 2012 dividend of 1.08 euros a share, up from 1.04 euros the previous year, even as Eni reported a 3.6 percent decline in fourth-quarter adjusted net income to 1.52 billion euros ($2 billion).
Anglo American Plc gained 1.3 percent to 2,039 pence. Full- year earnings per share amounted to $2.26, topping the average analyst projection for $1.92,
Gerresheimer AG advanced 3.9 percent to 43.17 euros, the highest price since it sold shares to the public in June 2007, after CA Cheuvreux and Kepler Capital Markets raised their recommendations for the stock.
Aker Solutions fell 11 percent to 107 kroner. The oil- services provider controlled by billionaire Kjell Inge Roekke reported fourth-quarter net income of 504 million kroner ($91 million), missing the average analyst projection that called for 678.6 million kroner.
Indexes started the session with a small plus, but failed to hold in positive territory, finished trading mixed. For the week the index DOW poteryad on 0,15%, Nasdaq fell by 0,07%, S & P500 gained 0.02%.
Data on the index of consumer sentiment from the Reuters / Michigan, which went much better than expected (76.3 points vs. 74.6 points) could not keep the indices of decline. The focus of market participants is a meeting of the "big twenty", which opened today in Moscow. Media reported that a draft communique to be issued later on, says that the country's "Big Twenty" would like to avoid high volatility of currency and disorderly movements in exchange rates.
Among corporate news worth noting the weakness of the shares in the world's largest retailer Wal-Mart Stores Inc (WMT). The reason for the reason of decrease WMT shares are reports of problems in its largest foreign subsidiary - British supermarket chain ASDA. These are found on the shelves of ASDA products, composed had come in, but in fact it contained horse meat. Associated with this scandal is growing in Europe.
DOW index components show a mixed trend. More than the others fell in the share price Wal-Mart Stores Inc (WMT, -2.30%). Leader with shares in The Coca-Cola Company (KO, +1.44%).
Sector of the S & P show a mixed trend. Leading conglomerates sector (+0.3%). Below is the rest of the basic materials sector (-0.9%).
At the close:
Dow +8.37 13,981.76 +0.06%
Nasdaq -6.63 3,192.03 -0.21%
S & P -1.59 1,519.79 -0.10%
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