European Stock Markets
Stocks across Europe headed for a third straight loss Thursday, hurt
by a batch of corporate earnings reports that left investors
unimpressed.
Investors are also focused on Federal Reserve Chairman Jerome Powell, who may drop further hints about U.S. interest-rate policy.
The Stoxx Europe 600 index SXXP, -0.88% slumped 0.9% to 376.13 and no sector traded higher. On Wednesday, the pan-European benchmark fell 0.7%, and marked a 4% pullback for February.
Germany’s DAX 30 index DAX, -1.38% tumbled 1.4% to 12,261.73, and France’s CAC 40 PX1, -0.98% fell 1% to 5,265.44.
The U.K.’s FTSE 100 UKX, -0.49% shed 0.5% to 7,194.88, and Italy’s FTSE MIB I945, -0.83% was down 0.9% at 22,409.63. Italy will hold a general election on Sunday.
European investors came into Thursday’s session seeing that there was yet another turn lower on Wall Street in the previous session. That left the S&P 500 Index SPX, -1.11% and the Dow Jones Industrial Average DJIA, -1.50% each down more than 1% when trading closed Wednesday.
Stocks globally have struggled since Tuesday, when Fed chief Powell told American lawmakers the U.S. economic outlook has strengthened since December. Investors saw that as a sign the Fed could raise interest rates four times this year, instead of three times as it has previously signaled.
Powell returns to Capitol Hill Thursday to testify before the Senate Banking Committee at 10 a.m. Eastern Time, or 3 p.m. London time. Investors worldwide watch U.S. Treasury yields and Fed rate policy, as higher American interest rates tend to drive financial markets globally and as many companies do business in the word’s largest economy.
WPP PLC shares WPP, -13.49% WPP, -12.88% tumbled 14% — their worst session since 1998 according to FactSet data — after the world’s largest advertising group forecast flat full-year sales growth for 2018.
Carrefour SA CA, -6.20% shares sank 8.3% as the supermarket chain operator late Wednesday said it’s cutting its dividend and that it swung to a 2017 net loss of €531 million ($652.7 million), largely because of non-recurring charges.
Beiersdorf AG BEI, -3.22% dropped 4.3% after the German skin care company said full-year 2017 net profit fell to €689 million ($841.6 million), due to one-off gains in 2016 as well as negative exchange-rate effects and losses from financial investments.
Topping to Stoxx 600, shares of Cobham PLC COB, +10.53% rallied 14% as the British aerospace-and-defense equipment supplier swung to 2017 pretax profit of £66.9 million ($92.6 million).
Investors are also focused on Federal Reserve Chairman Jerome Powell, who may drop further hints about U.S. interest-rate policy.
The Stoxx Europe 600 index SXXP, -0.88% slumped 0.9% to 376.13 and no sector traded higher. On Wednesday, the pan-European benchmark fell 0.7%, and marked a 4% pullback for February.
Germany’s DAX 30 index DAX, -1.38% tumbled 1.4% to 12,261.73, and France’s CAC 40 PX1, -0.98% fell 1% to 5,265.44.
The U.K.’s FTSE 100 UKX, -0.49% shed 0.5% to 7,194.88, and Italy’s FTSE MIB I945, -0.83% was down 0.9% at 22,409.63. Italy will hold a general election on Sunday.
European investors came into Thursday’s session seeing that there was yet another turn lower on Wall Street in the previous session. That left the S&P 500 Index SPX, -1.11% and the Dow Jones Industrial Average DJIA, -1.50% each down more than 1% when trading closed Wednesday.
Stocks globally have struggled since Tuesday, when Fed chief Powell told American lawmakers the U.S. economic outlook has strengthened since December. Investors saw that as a sign the Fed could raise interest rates four times this year, instead of three times as it has previously signaled.
Powell returns to Capitol Hill Thursday to testify before the Senate Banking Committee at 10 a.m. Eastern Time, or 3 p.m. London time. Investors worldwide watch U.S. Treasury yields and Fed rate policy, as higher American interest rates tend to drive financial markets globally and as many companies do business in the word’s largest economy.
WPP PLC shares WPP, -13.49% WPP, -12.88% tumbled 14% — their worst session since 1998 according to FactSet data — after the world’s largest advertising group forecast flat full-year sales growth for 2018.
Carrefour SA CA, -6.20% shares sank 8.3% as the supermarket chain operator late Wednesday said it’s cutting its dividend and that it swung to a 2017 net loss of €531 million ($652.7 million), largely because of non-recurring charges.
Beiersdorf AG BEI, -3.22% dropped 4.3% after the German skin care company said full-year 2017 net profit fell to €689 million ($841.6 million), due to one-off gains in 2016 as well as negative exchange-rate effects and losses from financial investments.
Topping to Stoxx 600, shares of Cobham PLC COB, +10.53% rallied 14% as the British aerospace-and-defense equipment supplier swung to 2017 pretax profit of £66.9 million ($92.6 million).
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