European Shares Edge Lower On Weak Earnings
European stocks were moving lower on Tuesday as investors digested weak earnings updates from the likes of Danone, HSBC and BHP, and looked ahead to the new round of talks between the U.S. and China getting underway in Washington later today.
Meanwhile, China accused the U.S. of fueling cybersecurity fears, thus risking exacerbating tensions between the two countries.
The pan European Stoxx 600 index was down 0.4 percent at 368.14 in opening deals after rising 0.2 percent in the previous session.
The German DAX was marginally lower, France’s CAC 40 index was moving down 0.3 percent and the U.K.’s FTSE 100 was declining half a percent.
French food company Danone dropped 1.2 percent after its full-year 2018 net income, Group share, declined 4.1 percent to 2.35 billion euros from 2.45 billion euros last year.
HSBC shares fell more than 4 percent as the Asia-focused lender reported a disappointing annual profit on higher costs.
Mining giant BHP declined over 1 percent after its first-half profit fell 8 percent.
Wirecard climbed nearly 3 percent to extend Monday’s rally in Frankfurt after financial regulator BaFi banned short selling in the stock amid reports that German authorities are probing into a possible violation of securities trading rules.
HeidelbergCement soared 4 percent. The company forecast higher demand after reporting a 10 percent rise in group revenue for the fourth quarter.
Fashion company TOM TAILOR Holding advanced 12 percent. The company said it would implement a capital increase of 10 percent against cash contribution with partial utilization of the approved capital.
Swiss engineering firm ABB rose half a percent after it won $42 million worth order for Train Technologies from Indian Railways.
In economic releases, Eurozone current account surplus weakened in December, as the surpluses in the visible trade, services and primary income accounts were partly offset by a deficit in the secondary income account, figures from the European Central Bank showed.
The current account surplus declined to EUR 16 billion from EUR 23 billion in November, which was revised from EUR 20 billion. The visible trade surplus weakened to EUR 16 billion from EUR 20 billion in the previous month.
Elsewhere, official data showed that U.K. wage inflation as well as the U.K. jobless rate held steady at the start of 2019.
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