European Stocks Fall on Escalating Tensions in Syria

By Investors Hub

European stocks are subdued on Thursday as escalating tensions surrounding Syria as well as disappointing economic reports offset investor excitement over a fresh round of corporate deal making.

While the U.K.?s FTSE 100 Index is just above the unchanged line, the French CAC 40 Index is up by 0.3 percent and the German DAX Index is up by 0.6 percent.

French grocery retailer Carrefour Group has slumped after reporting weak first-quarter sales. Airbus Group has also dropped after the aerospace and defense major said it anticipates adjusted EBIT to grow about 20 percent in 2018.

Germany’s GEA Group has fallen after the system provider for the food processing industry said it expects its first quarter EBITDA to be approximately 65 million euros, lower than previous year’s 96 million euros.

Meanwhile, German automaker Volkswagen has rallied on a Nikkei report that it is discussing a comprehensive tie-up with Japanese truck manufacturer Hino Motors in the commercial vehicle business.

Shire Plc shares have also advanced in London amid reports that Takeda Pharmaceutical is moving closer to making a bid for the company.

British rail and bus operator FirstGroup has soared after rejecting a takeover offer from U.S. private equity firm Apollo Management.

On the economic front, Eurozone industrial production decreased for the third straight month in February, Eurostat reported today.

Industrial output fell 0.8 percent month-on-month, following a 0.6 percent drop in January. This was the third consecutive drop and came in contrast to the expected growth of 0.1 percent.

U.K. economic growth remained subdued in the first quarter despite a strong export performance, according to the latest Quarterly Economic Survey from the British Chambers of Commerce.

In the service sector, the balance of firms reporting improved export sales rose slightly to +13 from +12 and orders to +10 from +7. Domestic sales held steady at +20, while domestic orders rose to +16 from +14.

A gauge of U.K. house price balance remained at zero in March, while French consumer price inflation accelerated more than initially estimated in the month, separate reports showed.