European Stocks Turn in Lacklustre Performance
By Investors Hub
European stocks are turning in a lacklustre performance on Tuesday even as banks have gained ground on growth optimism after ECB President Mario Draghi said there is little evidence that negative rates are undermining banking profitability.
While the UK’s FTSE 100 Index is down by 0.3 percent, the French CAC 40 Index is down by 0.1 percent and the German DAX Index is just below the unchanged line.
French lender Credit Agricole has rallied after it agreed to buy Italy’s wealth-management specialist Banca Leonardo SpA for an undisclosed amount.
Mining stocks have also moved broadly higher, with Anglo American and Antofagasta rising over 1 percent each.
Imperial Brands has surged higher after the tobacco group reported an increase in annual revenues on the back of favourable currency movements.
Fevertree shares have also soared after the fizzy mixer drinks maker said it expects full-year results to be “materially ahead” of current market expectations.
On the other hand, Swiss staffing firm Adecco Group has moved to the downside after reporting disappointing third quarter earnings.
Spanish utility Iberdrola has also come under pressure after its core profit for the first nine months of the year declined 5 percent.
German automaker BMW has moved to the downside after posting a lower third quarter profit due to higher expenses for research and development.
In economic news, German industrial output fell 1.6 percent in September, in contrast to August’s 2.6 percent increase, official data showed. Economists forecast production to drop 0.8 percent.
Separately, the latest report from the British Retail Consortium showed that UK retail sales fell the most in seven months in October. Eurozone retail sales figures for September topped forecasts.