Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

UPDATE 1-Cyclicals and ex-divs sap European shares amid earnings flurry

Published 10/08/2017, 06:57 pm
Updated 10/08/2017, 07:00 pm
© Reuters.  UPDATE 1-Cyclicals and ex-divs sap European shares amid earnings flurry
UK100
-
DE40
-
LLOY
-
AEGN
-
ADEN
-
HNKG_p
-
LXSG
-
RIO
-
AAL
-
BT
-
GLPG
-
STOXX
-
CCH
-
SFRGR
-
STX50EEX
-
SX7P
-
SXPP
-
ATCA
-

* STOXX 600, blue chips down 0.3 pct

* Ex-divs weigh on banks, miners

* Results boost Aegon , Coca Cola HBC

* Galapagos surges on drug study success

* Lanxess , Adecco , Henkel under pressure after Q2 updates (Adds quotes and detail, updates prices)

By Kit Rees

LONDON, Aug 10 (Reuters) - European shares slipped on Thursday as cyclicals fell and some big stocks went ex-dividend, while earnings from firms including Aegon and Coca Cola HBC sparked significant moves.

The pan-European STOXX 600 .STOXX index was down 0.3 percent by 0835 GMT as basic resources .SXPP and banks .SX7P fell, while euro zone blue chips .STOXX50E dipped 0.3 percent.

Britain's FTSE 100 .FTSE dropped 0.8 percent as large caps Anglo American AAL.L , BT Group BT.L , Rio Tinto RIO.L and Lloyds LLOY.L fell after going ex-dividend, while Germany's DAX .GDAXI retreated 0.3 percent. rising political tensions between the U.S. and North Korea hit risky assets globally in the previous session, with financials leading losses amongst European equities, company results were the dominant focus on Thursday. in insurer Aegon AEGN.AS and soft drinks bottler Coca Cola HBC CCH.L rose 8.5 percent and 9.4 percent respectively after their updates. beat expectations for its second quarter underlying pretax profit, while Coca Cola HBC shares hit a record level after first half sales were higher than expected.

"Aegon released a very strong set of Q2 results marked by a significant increase in the group SII ratio, strong underlying earnings and an improved outlook for capital generation," analysts at KBC Securities said in a note.

Second-quarter results, however, put pressure on shares in staffing firm Adecco ADEN.S , chemicals company Lanxess LXSG.DE and consumer group Henkel HNKG_p.DE , which were among the biggest fallers. 70 percent of MSCI Europe firms have reported second quarter earnings so far, of which more than 60 percent have either met or beaten analysts' expectations, according to Thomson Reuters data.

Financials and the energy and materials sectors have seen the biggest beats, while industrials have had the biggest misses

"Broadly in Europe, I had thought that (earnings) wouldn't be as good, partly because the strength of the euro would make (firms') export market less attractive and earnings would be more impinged by that, but it doesn't so far seem to be the case," James Butterfill, head of research and investment strategy at ETF Securities, said, adding that a pick-up in domestic demand is likely to have helped.

Shares in Belgian biotech firm Galapagos GLPG.AS were the top risers on the STOXX index, surging around 17 percent after a successful mid-stage study for its lung fibrosis drug. company SFR SFRGR.PA was up 9.6 percent after Altice ATCA.AS raised its stake in the firm to more than 95 percent and said that it was planning a full buyout offer for remaining shares.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.