European Shares Decline as Fed Statement Sways Sentiment

By Investors Hub

European stocks have moved mostly lower on Thursday as investors digest a mixed set of earnings results and react to the Federal Reserve statement.

The U.S. Federal Reserve cut interest rates by 0.25 percentage point, as widely expected, but indicated it is ready to hold off on further rate cuts for now. Elsewhere, the Bank of Japan signaled further monetary easing going forward.

While the U.K.?s FTSE 100 Index has slumped by 0.9 percent, the French CAC 40 Index is down by 0.2 percent and the German DAX Index is just below the unchanged line.

Shares of Peugeot have moved sharply lower. The French automotive manufacturer and Fiat Chrysler have confirmed a deal to merge in order to create the world’s fourth-largest automaker.

Air France-KLM has also come under pressure after its third quarter operating result fell 15.5 percent from the third quarter 2018, impacted by trading environment and fuel bill increase.

Lloyds Banking Group has fallen after reporting a 97 percent plunge in pre-tax profit for the third quarter. The company also said its Chief Operating Officer Juan Colombas plans to retire in July 2020.

Royal Dutch Shell has also tumbled after it warned that a slowing global economy could slow its $25 billion share buyback program.

Shares of carpet and floor coverings retailer Carpetright have plummeted. Having explored the viability of various long-term financing solutions to repay its debt facilities, the company said it is in talks with Meditor on a possible offer to acquire all of the issued and to be issued shares of Carpetright.

On the other hand, Dutch semiconductor supplier ASM International has jumped after forecasting a rise in fourth-quarter sales.

Professional kitchen specialist Rational AG has also moved notably higher after the company backed its full-year guidance after reporting a 14 percent rise in profit after taxes for the first nine months.

French aerospace company Safran has also advanced after reporting an increase in its third quarter adjusted revenue.

In economic news, Germany retail sales grew at a faster pace in September, data from Destatis revealed. Driven by non-food product sales, turnover in retail trade increased 3.4 percent year-on-year in September following a 3.1 percent rise in August. The rate came in line with expectations.