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European Stocks Down as Investors Digest Flurry Earning Reports

By Investors Hub

European stocks have moved to the downside on Thursday as investors digest a flurry of earning reports and kept an eye on the second day of Trump’s visit to Beijing.

U.S. tax reform worries and simmering Middle East tensions also kept traders on tenterhooks as the sixth round of Brexit negotiations got under way in Brussels.

While the U.K.’s FTSE 100 Index has fallen by 0.6 percent, the French CAC 40 Index and the German DAX Index are down by 1 percent and 1.1 percent, respectively.

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ArcelorMittal shares have fallen after EU anti-trust authorities opened a probe into the company’s proposed purchase of struggling Italian steel producer Ilva.

Vestas has plunged as after the world’s largest maker of wind turbines has lowered its profit guidance for the year, citing some uncertainty linked to U.S. tax reform.

Burberry shares have also fallen in London after the luxury brand said it would close stores and stop its products being sold in “unluxurious” areas.

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Hikma Pharmaceuticals has moved to the downside as it cut its revenue forecasts for its generic business for a third time, citing challenging market conditions in the United States.

Meanwhile, Aegon shares have jumped after the Dutch insurer posted solid third-quarter earnings, driven by fewer claims and higher fee revenues.

French electric utility Engie has also moved to the upside after Total SA agreed to buy its upstream LNG business for $1.49 billion.

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German lender Commerzbank has also rallied after it swung to a profit in the third quarter, matching expectations.

In economic news, German exports declined less than expected in September, while imports dropped unexpectedly, data from Destatis revealed.

Separately, survey data from the Bank of France showed that the French economy will likely grow at a steady pace in the fourth quarter. GDP is forecast to grow 0.5 percent, the same rate as seen in the third quarter.

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Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

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