European Stocks Subdued as Corporate Earnings Trickle Out

By Investors Hub

European stocks are subdued on Thursday as corporate earnings start trickling out and investors eye the latest ECB minutes for signs whether the central bank will start withdrawing its stimulus policies earlier than expected.

While the U.K.?s FTSE 100 Index is just below the unchanged line, the French CAC 40 Index is down by 0.2 percent and the German DAX Index is down by 0.3 percent.

In economic news, the German economy expanded at the fastest pace in six years in 2017, data from Destatis showed today. GDP grew 2.2 percent in 2017 after expanding 1.9 percent in 2016.

France’s economy expanded at a faster pace in the fourth quarter of 2017, according to the Bank of France survey. GDP is likely to have expanded 0.6 percent in the fourth quarter, revised up from 0.5 projected earlier.

Swiss luxury goods group Compagnie Financiere Richemont has rallied after reporting 1 percent growth in third-quarter sales, despite weakness in Europe and Japan.

Recruitment firm Hays has also moved to the upside after posting double-digit growth in fiscal second quarter net fees.

Meanwhile, Sodexo shares have tumbled after the French food services and facilities management group reported that its first quarter revenues totaled 5.3 billion euro, down 2.6 percent compared to the same period in the previous fiscal year.

Tesco shares has also come under pressure after Christmas trading results in its core U.K. business fell short of market expectations.

Similarly, Marks and Spencer Group has moved lower after reporting a 2.8 percent drop in like-for-like sales for its struggling clothing and home divisions over the Christmas quarter.