Europe midday: Shares down as Worldline tanks on profit warning

European shares extended losses on Wednesday as Worldline stock plunged by 60% after the French payments company slashed earnings targets.

The pan-European Stoxx 600 index was down 0.40% at 433.38 at midday, with all major bourses lower.

“European markets have opened lower with earnings taking centre stage. In terms of the banks, reports have been mixed with investors cheering Deutsche Bank which reported better than expected quarterly net profit, while they are struggling to get excited by updates from Santander and Lloyds," said Interactive Investor head of investment Victoria Scholar.

Shares in China and Hong Kong outperformed the Asia region on news Beijing planned to issue additional sovereign debt and raise the budget deficit ratio.

The government announced a 1 trillion yuan sovereign bond issuance. State media reported the funds would be used to help rebuild areas hit by this year’s floods and to improve urban infrastructure.

In equity news, Worldline tanked after the company cut annual earnings targets due to the macroeconomic slowdown in core geographies, particularly Germany.

The group now sees organic or self-generated sales growth in 2023 of between 6% and 7%, compared with 8% to 10% previously expected.

French software maker Dassault Systemes surged as it lifted its full-year profit outlook.

Deutsche Bank shares gained after the German lender beat expectations for third quarter earnings.

Net profit was €1.03bn, above an analyst consensus of quarterly net profit attributable to shareholders of €997m.

Heineken shares also gained as the Dutch brewing giant held annual guidance, despite lower sales volumes due to the poor summer weather.

Reporting by Frank Prenesti for Sharecast.com