European Stock Markets
European shares dipped on Thursday, tracking more timid Wall Street
trading as volumes thinned out for the Thanksgiving holiday, while euro
zone stocks drove higher, boosted by strong business growth figures for
the bloc.
Societe Generale strategists however warned “the eurozone recovery is now a well-known story”, and were less enthusiastic about the potential for equities in the new year, adding that a heavy political agenda in Europe could affect markets.
British stocks lagged peers, down 0.3 percent, as energy firm Centrica plummeted after results.
Leading European gainers was Altice (ATCA.AS), jumping 4.7 percent after a report the debt-ridden French telecoms and cable group was looking to sell its telecoms network in the Dominican Republic.
Thyssenkrupp (TKAG.DE) reversed early losses to trade up 1 percent after demand for elevators helped boost its orders to a five-year high.
As the earnings season drew near its close, MSCI Europe earnings growth was tracking 10.1 percent in dollar terms while companies in the MSCI EMU enjoyed 11.1 percent earnings growth.
Analysts have been revising down earnings estimates for European companies this quarter. Deutsche’s Weidenbach put this down to the strengthening euro denting expectations for earnings from foreign-exposed companies especially in healthcare and consumer staples.
The pan-European STOXX 600 slid 0.2 percent, while euro zone blue chips .STOXX50E erased early losses to trade up 0.2 percent after business surveys for the bloc cemented optimism on the economy.
Euro
zone businesses boomed into the year end as November composite,
services and manufacturing PMIs beat all forecasts in Reuters polls.
Societe Generale strategists however warned “the eurozone recovery is now a well-known story”, and were less enthusiastic about the potential for equities in the new year, adding that a heavy political agenda in Europe could affect markets.
British stocks lagged peers, down 0.3 percent, as energy firm Centrica plummeted after results.
Centrica (CNA.L)
dropped 16.4 percent, set for its biggest daily drop ever, after it
lost 823,000 or about 6 percent of its energy customers in four months
and full-year earnings missed market estimates.
Leading European gainers was Altice (ATCA.AS), jumping 4.7 percent after a report the debt-ridden French telecoms and cable group was looking to sell its telecoms network in the Dominican Republic.
Its shares are still down nearly 60 percent from the start of the year as funds sold out of the company’s U.S. unit.
Thyssenkrupp (TKAG.DE) reversed early losses to trade up 1 percent after demand for elevators helped boost its orders to a five-year high.
Telecom Italia (TLIT.MI)
shares rose 4.7 percent on speculation about a possible spin-off of its
telephone network, and after the firm said it would work with Rome
under special “golden powers” to protect it as a strategic asset.
As the earnings season drew near its close, MSCI Europe earnings growth was tracking 10.1 percent in dollar terms while companies in the MSCI EMU enjoyed 11.1 percent earnings growth.
Analysts have been revising down earnings estimates for European companies this quarter. Deutsche’s Weidenbach put this down to the strengthening euro denting expectations for earnings from foreign-exposed companies especially in healthcare and consumer staples.
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