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Market Update

European Leaders Struggle to Calm Markets After Brexit

Author: Sarla Buch
Last Update: 2:41 AM ET June 27 2016

4:00 PM Frankfurt – European markets extended two-day losses to more than 5% and the U.K. pound fell deeper. European politicians and central bankers worked together to calm markets. K&S forecasted operating profit in the first-half to decline due to lower selling prices in potash and magnesium products.

European markets extended Friday-losses after world markets dropped for the second day reacting to the U.K. voters’ decision to leave the European Union.

Market indexes in London, Paris and Frankfurt extended two-day losses to at least 5% and the pound continued to drift lower on the worries that the U.K. economy may shrink between 5% and 10% in the next two years.

European leaders also stepped up the drive to negotiate a quick settlement with the U.K. and calm other jittery groups in Greece, France and Spain.

In London trading, FTSE 100 index declined 121.70 or 1.9% to 6,016.99 and in Frankfurt the DAX index plunged 332.28 or 3.5% to 9,226.63.

In Paris, CAC 40 index tumbled 150.81 or 3.6% to 3,957.90.

Porvair Plc dropped 3.9% to 321.97 pence after the U.K.-based filtration products maker said group revenues in the first-half ending in May soared 13% from a year ago to £52.1 million.

Net profit in the year jumped 9.7% from a year ago to £3.4 million compared to £3.1 million and diluted earnings per share increased to 7.4 pence from 6.9 pence.

K&S AG plunged 12.7% to €18.46 after the Germany-based potash and specialty fertilizer producer forecasted operating profit in the first-half to drop to €10 million compared to €179.2 million in the same period a year ago.

The company said decline in profit mainly due to lower selling prices in potash and magnesium products and outages related to its Werra, Germany plant and weak sales of salt and de-icing products in the U.S.

The company is scheduled to release its first-half result on August 11.

Ultra Electronics Holdings Plc declined 6.9% to 1,575 pence after the U.K.-based defense and aerospace products maker estimated full-year results will be remain unchanged, other than the impact of the disposal of Ultra ID and positive order intake in 2016 from a year ago.

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