Europe open: Stocks in the red amid disappointing corporate news flow
European stocks fell in early trade as investors sifted through mostly downbeat corporate news ahead of some key data releases.
At 0840 GMT, the benchmark Stoxx Europe 600 index was down 0.9%, France’s CAC 40 was off 1.3% and Germany’s DAX was 0.7% weaker.
“In what looks set to be another dreary day for equities, investors are increasingly forgetting about US strength and focusing instead on China and the Eurozone,” said Mike McCudden, heady of derivatives at stockbroker Interactive Investor.
“In contrast to debate over frequency and scale of US rate hikes, the eurozone will be continuing along the path of monetary easing next week in the hope of a turnaround for the region. Furthermore, with the US taking its Thanksgiving break this week there is not a lot happening for investors to get their teeth in to.”
On the corporate front, EasyJet shares were under pressure after the low-cost carrier said it was cancelling all flights to and from Sharm el Sheikh until 6 January.
B&Q owner Kingfisher was under the cosh after it said total sales in the third quarter were down 2.5% due to currency effects as a strong UK performance was undermined by continued softer trading in France.
Shares in aerospace supplier Zodiac Aerospace tumbled after it reported a 44.6% fall in core annual earnings.
Telecoms group Altice slumped after shareholder Next Alt, which is owned by Patrick Drahi, said it wanted to exercise a right to 7.5% of its shares.
On the upside, offshore driller Seadrill gained despite saying it swung to a net loss in the three months to the end of September, as it announced $600m in cost cuts for this year.
Still to come on the macroeconomic calendar, the German Ifo survey is at 0900 GMT. In the US, the second release of third quarter GDP is at 1330 GMT, while S&P Case-Shiller house prices are at 1400 GMT and consumer confidence is at 1500 GMT.