Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

European stocks recoup most losses; weak outlook hits SAP

10/21/2021 | 05:18am EST

* SAP down 3.2% despite positive Q3

* Miners hit by Evergrande troubles

* Unilever, Hermes beat earnings estimates

* Barclays, Nordea down despite strong earnings

Oct 21 (Reuters) - European stocks steadied at six-week highs on Thursday, as buying of defensives and growth stocks helped offset losses in miners and disappointing earnings forecasts, including from software major SAP.

Sentiment was also subdued by renewed concerns about China's property sector after the collapse of a $2.6 billion asset sale at indebted developer China Evergrande Group.

After declining as much as 0.6%, the Europe-wide STOXX 600 index ended down 0.1% at 469.71. A European equity strategist at Bank of America had earlier this month set a year-end target of 420 for the STOXX 600, implying a fall of about 10% from current levels.

European miners, which have a large exposure to China, shed 3.0% as iron ore and base metal price plunged. UK-listed shares of Anglo American fell 2.7% even though it reported a 2% rise in overall production in the third quarter.

"Mining stocks have been unable to shake investor concerns sparked by yet another twist in the Evergrande saga," said Danni Hewson, a financial analyst at AJ Bell.

Data on Wednesday showed euro zone consumer confidence fell by 0.8 points in October from September.

Company after company has warned that supply issues and price hikes aren't going to be a flash in the pan and are going to impact earnings going forward, AJ Bell's Hewson said.

Europe's most valuable tech company SAP dropped 3.2% and was the biggest drag on the STOXX 600 despite positive third-quarter results as traders were unimpressed by the company's outlook, particularly its licensing forecast.

Swiss engineering and tech group ABB tumbled nearly 6.2% after it lowered its full-year sales forecast and warned of shortages of components, while Sweden's AB Volvo fell about 0.4% after it said chip shortages hampered production of its trucks.

Nordic Semiconductor plunged 12.4% after its core earnings fell slightly year-on-year and the company warned of rising costs.

There was no relief for banking stocks either. The sector fell 0.4% even though UK's Barclays and Finland's Nordea reported upbeat quarterly results.

Spain's lender-heavy IBEX index slipped 0.8%, the most among regional peers, after downbeat earnings at Bankinter weighed.

Defensive sectors such as personal and household goods index rose 0.8% on the back of Unilever's third-quarter earnings beat.

Luxury stocks were also higher after Birkin bag maker Hermes rose 1.4% on strong quarterly sales.

Cartier-owner Richemont advanced 0.4% after HSBC raised the brand to "buy" from "hold", citing its leadership and momentum in the jewellery industry. (Reporting by Anisha Sircar and Sruthi Shankar in Bengaluru; editing by Uttaresh.V, Anil D'Silva, William Maclean)


ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
AB VOLVO -1.39% 197.18 Delayed Quote.1.74%
ABB LTD 0.19% 32.41 Delayed Quote.31.16%
BANKINTER, S.A. -1.16% 4.337 Delayed Quote.-0.81%
BARCLAYS PLC -0.31% 186.66 Delayed Quote.27.65%
CHINA EVERGRANDE GROUP -0.88% 2.25 End-of-day quote.-84.90%
COMPAGNIE FINANCIÈRE RICHEMONT SA -0.22% 135.7 Delayed Quote.69.83%
HERMÈS INTERNATIONAL -0.65% 1606.5 Real-time Quote.82.64%
MID PENN BANCORP, INC. -3.07% 30.29 Delayed Quote.42.05%
NORDIC SEMICONDUCTOR -1.30% 288 Real-time Quote.111.45%
PERNOD RICARD 0.69% 204.7 Real-time Quote.30.55%
SAP SE 0.04% 114.16 Delayed Quote.6.47%
UNILEVER PLC 0.18% 3879 Delayed Quote.-11.84%
Latest news "Economy & Forex"
04:42aBitcoin falls by a fifth, cryptos see $1 billion worth liquidated
RE
04:39aIndia detects third Omicron case, reports 415 COVID-19 deaths
RE
03:49aVinfast is eyeing ipo in the second half of 2022
RE
03:38aVinfast singapore will own stake of vinfast operation in vietnam
RE
03:38aVingroup says it establishes a singapore-based holding company called vinfast singapore in preparation for u.s. listing of its car unit vinfast
RE
03:32aTaiwan says is important partner, will keep talking to U.S. on currency
RE
03:12aUNECA UNITED NATIONS ECONOMIC COMMISSION FOR AFR : Fintech is key for financing Africa's digital transformation
PU
02:22aSri Lanka cenbak gov says to review possible illegal money channels as remittance drops
RE
02:04aSri Lanka cenbak gov says to review possible illegal money channels as remittance drops
RE
02:02aMINISTRY OF COAL OF REPUBLIC OF INDIA : Substantial Increase in Coal Production from Captive Mines
PU
Latest news "Economy & Forex"