European Shares Drift Lower On Weak Data, Earnings

European stocks traded lower on Thursday, with a slew of disappointing earnings as well as downbeat PMI and unemployment data weighing on markets.

The eurozone manufacturing sector remained in contraction territory in July, according to a survey released earlier today.

HCOB’s final manufacturing PMI came in unchanged from June at 45.8, a tad higher than the preliminary estimate of 45.6.

Separate data from Eurostat showed the euro area unemployment rate rose slightly in June.

The unemployment rate posted 6.5 percent in June, up from 6.4 percent in May. The rate was unchanged from June 2023.

The pan European STOXX 600 was down half a percent at 515.66 after climbing 0.8 percent in the previous session.

The German DAX fell 1.1 percent, France’s CAC 40 shed 1.2 percent and the U.K.’s FTSE 100 was down 0.2 percent.

The British pound was under pressure ahead of the Bank of England’s rate decision later in the day.

The central bank is likely to lower its interest rate from a 16-year high, but it will be a very close call.

In corporate news, Dutch banking giant ING fell 2.3 percent after posting a drop in Q2 net profit.

Steelmaker ArcelorMittal shed 1.6 percent after Q2 net income dropped 73 percent.

Germany’s BMW slumped 3.6 percent after its auto unit reported slightly lower-than-forecast profitability in the second quarter.

Peer Volkswagen declined 1.8 percent after second-quarter operating profit fell amid higher costs.

Daimler Truck tumbled 2.2 percent after cutting its FY outlook.

DHL owner Deutsche Post plunged 4.6 percent after reporting its earnings results for the second quarter.

Fashion house Hugo Boss climbed 2.7 percent after confirming the 42 percent drop in its second-quarter operating profit.

French lender Societe Generale plummeted more than 7 percent after cutting the outlook for its French retail activities.

Credit Agricole dropped 1.2 percent after posting a decline in Q2 profit.

Technip Energies, an engineering firm for the energy and chemicals industries, tumbled 4.5 percent despite reporting a rise in its first-half net profit and revenue.

Veolia Environnement fell 2.5 percent. The environmental-services giant backed its FY outlook after reporting a 10 percent increase in first-half earnings.

Rolls-Royce shares jumped 10 percent. The British aerospace engineer raised its profit guidance and announced it would restart dividends in its results for the full year.

Medicap equipment maker Smith & Nephew rallied 6.4 percent as half-year profit beat estimates.

Energy giant Shell rose 1.4 percent after launching a $3.5 billion share buyback program.

Fashion and homewares company Next soared 8 percent after raising its guidance for the year.

Lender Barclays declined 2 percent after posting a fall in second-quarter profit.

Business News