Log in
E-mail
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

MarketScreener Homepage  >  News  >  Indexes & Markets

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 

European stocks fall as healthcare, construction sectors drag

10/21/2020 | 12:35pm EST
FILE PHOTO:  The German share price index DAX graph at the stock exchange in Frankfurt

(Reuters) - European shares fell for a third straight session on Wednesday, as losses in healthcare and construction stocks countered a lift from encouraging earnings from consumer giant Nestle and telecoms equipment maker Ericsson.

The pan-European STOXX 600 fell 1.3% to close at its lowest in more than two weeks.

Losses were broad-based with only the basic material sector in the green, supported by rising copper prices.

Nestle lifted its 2020 sales forecast following a quarterly beat, but shares inched lower after early gains.

Sweden's Ericsson jumped 9.6% as higher margins and China's 5G rollout helped the company beat quarterly core earnings estimates.

"Earnings have been generally well above expectations, and guidance has been a positive surprise," said Patrick Moonen, principal strategist in the multi-asset team at NN Investment Partners.

"But there are other elements that are currently at play and may have a bigger impact on the market performance than earnings," he said, pointing to many European countries reimposing mobility restrictions following a surge in COVID-19 cases that could weigh on fourth-quarter economic activity.

The STOXX 600 has struggled to break out of a trading range since June, when it recouped a large part of the early pandemic-driven losses. The benchmark is still about 16% below its all-time high.

Capital Economics expects the new containment measures to cause the euro-zone economy to stagnate over the next six months, resulting in only a slight increase in GDP on a quarter-on-quarter basis in the fourth quarter and zero growth in the first quarter of next year.

London's exporter-heavy FTSE 100 underperformed, marking its worst session in a month, hit by a surge in pound after bullish Brexit comments.

Vivendi rose 1.6% after the French media group reported a bigger-than-expected quarterly sales and unveiled plans to list its most-prized asset, Universal Music Group, in 2022.

Third-quarter profits for companies on the STOXX 600 are expected to drop 34.8%, according to Refinitiv data, a slight improvement from the 36.7% predicted at the start of the earnings season.

Of the 29 companies that reported so far, 75.9% have topped earnings expectations.

Gold miner Centamin Plc slumped 19% to the bottom of STOXX 600 after cutting its 2020 production forecast.

Construction companies also took a knocking, with Assa Abloy, the world's biggest lockmaker, falling 4.1% after it reported a drop in quarterly sales.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Sriraj Kalluvila and Lisa Shumaker)

By Sruthi Shankar and Susan Mathew


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
ASSA ABLOY AB -1.41% 209.8 Delayed Quote.-2.83%
CENTAMIN PLC 3.52% 110.3 Delayed Quote.-13.15%
ERICSSON AB -0.33% 104.25 Delayed Quote.28.25%
EURO / BRITISH POUND (EUR/GBP) 0.01% 0.89049 Delayed Quote.5.09%
EURO STOXX 50 0.11% 3511.9 Delayed Quote.-6.33%
MSCI UNITED KINGDOM (STRD, UHD) -0.54% 1001.749 Real-time Quote.-15.40%
NESTLÉ S.A. 0.16% 101.94 Delayed Quote.-2.86%
NN, INC. -2.65% 6.62 Delayed Quote.-26.49%
STOXX EUROPE 600 -0.08% 392.09 Delayed Quote.-5.64%
VIVENDI SE 0.83% 25.45 Real-time Quote.-1.43%
Latest news "Markets"
05:25pWALL STREET STOCK EXCHANGE : Stocks Slip After Dow's 30000 Milestone
DJ
05:19pWALL STREET STOCK EXCHANGE : Dow, S&P pull back from record highs
RE
04:55pStocks dip on U.S. jobs data; dollar down, oil up
RE
04:23pWALL STREET STOCK EXCHANGE : Stocks Slip After Dow's 30000 Milestone
DJ
04:14pWALL STREET STOCK EXCHANGE : S&P 500, Dow pull back from all-time closing highs after grim jobless data
RE
04:10pTSX rises 0.25% to 17,317.79
RE
01:35pWALL STREET STOCK EXCHANGE : Stocks Pause After Dow's 30000 Milestone
DJ
01:12pWALL STREET STOCK EXCHANGE : Stocks Pause After Dow's 30000 Milestone
DJ
12:30pEUROPE : European shares end four-day winning streak as vaccine rally cools
RE
12:27pWALL STREET STOCK EXCHANGE : Stocks Pause After Dow's 30000 Milestone
DJ
Latest news "Markets"