Europe Stocks cut six-day surge as BNP Paribas pulls back
February 14, 2014 11:28 am
European stocks slide lower, ending their longest winning streak of the year, as firms from Rolls-Royce Holdings Plc to BNP Paribas SA reported results.
Rolls-Royce sagged down the most since August 2000 after predicting sales will decline and will not be able to advance this year for the first time in a decade. BNP Paribas relinquished 2.6 percent after France’s biggest bank unexpectedly reported a slumped in fourth-quarter earnings. Nestle SA gave up 1.5 percent after projecting growth near the low end of its target in 2014. Renault SA bolstered 5.6 percent after recording an earning that topped estimates.
The Stoxx Europe 600 Index backed down 0.2 percent to 331.48 at the close of trading in London after earlier dropping as much as 1 percent. The gauge climbed 4.5 percent in the six days through yesterday, with comments by Federal Reserve Chair Janet Yellen firing up an upbeat in the economy can weather further stimulus trims.
“With a clear lack of positive drivers, the risk rally is running out of steam,” said Witold Bahrke, who helps oversee $55 billion as a senior strategist at PFA Asset Management in Copenhagen. “BNP’s headline numbers were disappointing and aren’t helping sentiment in today’s session.”
A U.S. Commerce Department report in Washington showed that retail sales surprisingly sagged down 0.4 percent in January after falling a revised 0.1 percent the previous month. Separate data showed that initial unemployment claims soared to 339,000 in the week ended February 8 from 331,000 in the prior period. Economists had expected a downgrade to 330,000.
Consumer Confidence
European shares pared earlier losses after a report showed U.S. consumer confidence improved for the first time in five weeks. The Bloomberg Consumer Comfort Index rose to minus 30.7 in the week ended February 9 from minus 33.1 the prior period. A measure of the state of the economy jumped to the highest level since September.
National benchmark indexes dropped in 11 of the 18 western-European markets. Germany’s DAX rose 0.6 percent and France’s CAC 40 gained 0.2 percent. The U.K.’s FTSE 100 lost 0.2 percent.
Rolls-Royce (RR/) plunged down 14 percent to 1,045 pence. The maker of commercial-jet engines said 2014 revenue won’t increase because of lower demand for defense equipment. The company reported that pretax profit excluding hedging and some one-time items rose to 1.76 billion pounds ($2.9 billion) in 2013, while sales advanced 27 percent to 15.5 billion pounds.
BNP Paribas
BNP Paribas retreated 2.6 percent to 59.30 euros. Net income fell to 127 million euros ($173 million) from 519 million euros a year earlier after the lender set aside $1.1 billion. The Paris-based bank said in October that it was reviewing payments that might be subject to U.S. sanctions. Today’s result was the lowest quarterly profit since the fourth quarter of 2008, when it posted a loss, and it missed the 1.02 billion-euro average analyst estimate.
Nestle slipped 1.5 percent to 66.10 Swiss francs. The world’s largest food company projected that revenue will rise about 5 percent this year excluding acquisitions, disposals and currency shifts. The Kit Kat maker also reported the smallest annual sales advance in four years amid sluggish spending in developed markets.
Lloyds Banking Group Plc declined 2.7 percent to 81.3 pence. Britain’s biggest mortgage lender reported its net loss narrowed to 838 million pounds for 2013, more than the 519 million-pound loss that analysts had estimated.
ABB Ltd. decreased 2.4 percent to 22.45 francs. The maker of power transformers lowered its medium-term sales target, citing weak global economic growth. The company predicted that sales excluding acquisitions will grow at an annual rate of 4 percent to 5 percent in the four years to 2015. That compared with a previous target of 5.5 percent to 8.5 percent. Net income declined 13 percent to $525 million in the fourth quarter, the company said.
Splenda Sweetener
Tate & Lyle Plc plunged 16 percent to 660 pence after the maker of artificial sweetener Splenda predicted fiscal-year 2015 sucralose prices to be about 15 percent lower than in the current year. The company said a significant supply of unsold Chinese sucralose had made the market for the sweetener more competitive.
FLSmidth & Co. A/S sank 7.2 percent to 277.30 kroner. The Danish mining-equipment maker posted a fourth-quarter net loss of 179 million kroner ($32.8 million), compared with a profit of 462 million kroner a year earlier.
Renault Climbs
Renault climbed 5.6 percent to 69.56 euros. Europe’s third-largest carmaker said full-year operating profit jumped 59 percent as it delivered more low-cost models from the Dacia division and the automaker reduced costs. Earnings before interest, taxes and one-time items climbed to 1.24 billion euros, exceeding the 1.06 billion euros that analysts had estimated on average.
Commerzbank AG rose 1.5 percent to 13.60 euros. Germany’s second-largest bank said net income amounted to 64 million euros in the fourth quarter, beating the average analyst projection that called for a 23.3 million-euro profit. Today’s profit compared with a loss of 726 million in the year earlier.
Aker Solutions ASA jumped 3.8 percent to 101.70 kroner. The Norwegian oil-services company said its order intake rallied to 12.9 billion kroner ($2.1 billion) in the fourth quarter from 7.7 billion kroner a year earlier. The company proposed increasing its dividend to 4.10 kroner a share from 4 kroner a year earlier. Earnings before interest, taxes, depreciation and amortization was 1.06 billion kroner in the quarter, compared with the average analyst estimate of 1.11 billion kroner. The material has been provided by InstaForex Company – www.instaforex.com
European stocks slide lower, ending their longest winning streak of the year, as firms from Rolls-Royce Holdings Plc to BNP Paribas SA reported results.
Rolls-Royce sagged down the most since August 2000 after predicting sales will decline and will not be able to advance this year for the first time in a decade. BNP Paribas relinquished 2.6 percent after France’s biggest bank unexpectedly reported a slumped in fourth-quarter earnings. Nestle SA gave up 1.5 percent after projecting growth near the low end of its target in 2014. Renault SA bolstered 5.6 percent after recording an earning that topped estimates.
The Stoxx Europe 600 Index backed down 0.2 percent to 331.48 at the close of trading in London after earlier dropping as much as 1 percent. The gauge climbed 4.5 percent in the six days through yesterday, with comments by Federal Reserve Chair Janet Yellen firing up an upbeat in the economy can weather further stimulus trims.
“With a clear lack of positive drivers, the risk rally is running out of steam,” said Witold Bahrke, who helps oversee $55 billion as a senior strategist at PFA Asset Management in Copenhagen. “BNP’s headline numbers were disappointing and aren’t helping sentiment in today’s session.”
A U.S. Commerce Department report in Washington showed that retail sales surprisingly sagged down 0.4 percent in January after falling a revised 0.1 percent the previous month. Separate data showed that initial unemployment claims soared to 339,000 in the week ended February 8 from 331,000 in the prior period. Economists had expected a downgrade to 330,000.
Consumer Confidence
European shares pared earlier losses after a report showed U.S. consumer confidence improved for the first time in five weeks. The Bloomberg Consumer Comfort Index rose to minus 30.7 in the week ended February 9 from minus 33.1 the prior period. A measure of the state of the economy jumped to the highest level since September.
National benchmark indexes dropped in 11 of the 18 western-European markets. Germany’s DAX rose 0.6 percent and France’s CAC 40 gained 0.2 percent. The U.K.’s FTSE 100 lost 0.2 percent.
Rolls-Royce (RR/) plunged down 14 percent to 1,045 pence. The maker of commercial-jet engines said 2014 revenue won’t increase because of lower demand for defense equipment. The company reported that pretax profit excluding hedging and some one-time items rose to 1.76 billion pounds ($2.9 billion) in 2013, while sales advanced 27 percent to 15.5 billion pounds.
BNP Paribas
BNP Paribas retreated 2.6 percent to 59.30 euros. Net income fell to 127 million euros ($173 million) from 519 million euros a year earlier after the lender set aside $1.1 billion. The Paris-based bank said in October that it was reviewing payments that might be subject to U.S. sanctions. Today’s result was the lowest quarterly profit since the fourth quarter of 2008, when it posted a loss, and it missed the 1.02 billion-euro average analyst estimate.
Nestle slipped 1.5 percent to 66.10 Swiss francs. The world’s largest food company projected that revenue will rise about 5 percent this year excluding acquisitions, disposals and currency shifts. The Kit Kat maker also reported the smallest annual sales advance in four years amid sluggish spending in developed markets.
Lloyds Banking Group Plc declined 2.7 percent to 81.3 pence. Britain’s biggest mortgage lender reported its net loss narrowed to 838 million pounds for 2013, more than the 519 million-pound loss that analysts had estimated.
ABB Ltd. decreased 2.4 percent to 22.45 francs. The maker of power transformers lowered its medium-term sales target, citing weak global economic growth. The company predicted that sales excluding acquisitions will grow at an annual rate of 4 percent to 5 percent in the four years to 2015. That compared with a previous target of 5.5 percent to 8.5 percent. Net income declined 13 percent to $525 million in the fourth quarter, the company said.
Splenda Sweetener
Tate & Lyle Plc plunged 16 percent to 660 pence after the maker of artificial sweetener Splenda predicted fiscal-year 2015 sucralose prices to be about 15 percent lower than in the current year. The company said a significant supply of unsold Chinese sucralose had made the market for the sweetener more competitive.
FLSmidth & Co. A/S sank 7.2 percent to 277.30 kroner. The Danish mining-equipment maker posted a fourth-quarter net loss of 179 million kroner ($32.8 million), compared with a profit of 462 million kroner a year earlier.
Renault Climbs
Renault climbed 5.6 percent to 69.56 euros. Europe’s third-largest carmaker said full-year operating profit jumped 59 percent as it delivered more low-cost models from the Dacia division and the automaker reduced costs. Earnings before interest, taxes and one-time items climbed to 1.24 billion euros, exceeding the 1.06 billion euros that analysts had estimated on average.
Commerzbank AG rose 1.5 percent to 13.60 euros. Germany’s second-largest bank said net income amounted to 64 million euros in the fourth quarter, beating the average analyst projection that called for a 23.3 million-euro profit. Today’s profit compared with a loss of 726 million in the year earlier.
Aker Solutions ASA jumped 3.8 percent to 101.70 kroner. The Norwegian oil-services company said its order intake rallied to 12.9 billion kroner ($2.1 billion) in the fourth quarter from 7.7 billion kroner a year earlier. The company proposed increasing its dividend to 4.10 kroner a share from 4 kroner a year earlier. Earnings before interest, taxes, depreciation and amortization was 1.06 billion kroner in the quarter, compared with the average analyst estimate of 1.11 billion kroner.
The material has been provided by InstaForex Company – www.instaforex.com
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