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Market Update

European Markets Fall 1% After Turkey Downs Russian Jet

Author: Lucy Stoeva
Last Update: 10:18 AM ET November 24 2015

4:00 PM Frankfurt European bourses recorded losses on Tuesday as the political and tourism environments deteriorate. Zodiac Aerospace said core annual earnings declined 44%. Kingfisher revenues dropped 3%. Rolls-Royce announced a major restructuring.

European markets lost ground on Tuesday amid geopolitical turmoil, another hit on tourism stocks in the aftermath of terrorist attacks, and disappointing company reports.

The political environment in Europe became even more complicated after Turkey shot down a Russian fighter jet near the Syrian border.

While it is still unclear whether the plane was in the airspace controlled by Turkey or Syria, Russian president Vladimir Putin warned Turkey that there would serious consequences.

In addition, Washington issued a global travel warning to the U.S. citizens on the heightened terrorist threats.

""Current information suggests that terrorist groups continue to plan terrorist attacks in multiple regions,"" the State Department warned on its website and cited recent attacks in Denmark, France, Mali, Nigeria and Turkey.

In London trading, FTSE 100 index dropped 73.22 or 1.2% to 6,232.43 and in Frankfurt the DAX index slumped 162.45 or 1.5% to 10,927.31.

In Paris, CAC 40 index declined 98.72 or 2% to 4,790.23.

Babcock International Group Plc jumped 3.1% to 1,037 pence after the U.K.-based defense engineering service provider reported group revenues in the first-half ending in September increased 5% from a year ago to 2.04 billion.

Net profit in the period soared 8.7% from a year ago to 128.2 million and diluted earnings per share slipped to 24.6 pence from 23.6 pence.

Compass Group Plc fell 0.2% to 1,075 pence after the U.K.-based catering company said revenues in the year ending in September advanced 5.8% from a year ago to 17.6 billion.

Net profit in the period rose 0.7% from a year ago to 877 million and diluted earnings per share increased to 52.2 pence from 48.9 pence.

Kingfisher Plc slipped 1.2% to 340.90 pence after the U.K.-based home improvement retailer stated revenues in the third-quarter ending in October dropped 2.5% from a year ago to 2.65 billion due to a sluggish French market and exchange rate losses.

The retailer said total sales in France plunged 7% while total sales in the U.K. and Ireland jumped 5.4% but other international sales declined 11.1%.

Mitchells & Butlers Plc rose 0.2% to 348.70 pence after the U.K.-based operator of restaurants, pubs and bars, reported total revenues in the year ending in September jumped 6.6% from a year ago to 2.1 billion.

Net profit in the period surged 10.7% from a year ago to 103 million compared to 93 million and diluted earnings per share advanced to 24.9 pence from 22.5 pence.

Rolls-Royce Holding Plc gained 0.7% to 573 pence after the U.K.-based defense contractor announced plans for major restructuring with the aim of annual savings of up to 200 million from 2017.

Zodiac Aerospace SA was among the leading losers, down 6.8% to 22.75, after the French aerospace company reported that core annual earnings declined 44.6% due to production delays at the aircraft seats division.

Current operating income declined 40% to 549 million compared to previous fiscal year.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc