4:00 PM Frankfurt, Germany – European stock markets declined on disappointing earnings reports and company news. JCDecaux lowered its second-quarter outlook. Banco Popolare SC reported first-quarter loss of €314 million due to loan write-downs. Carlsberg’s revenue declined on weak sales in China. Deutsche Post reported double-digit profit growth.
European shares declined on Wednesday on disappointing earnings and corporate news. However losses were trimmed by a surge in volatile resource sector stocks.
Among major losers, JCDecaux plummeted 9.6% on weak second-quarter outlook, while Banco Popolare SC slumped 8.9% on a surprising first-quarter loss due to loan write-downs.
Carlsberg erased 2.6%, TUI and Experian lost 1% each on lower than expected financial results.
Concerns about mergers also contributed to the negative sentiment. Raiffeisen Bank plummeted 8.6% ahead of the Austrian bank’s merger with its parent company Raiffeisen Zentralbank.
Spanish Telefonica lost 1.4% on reports that the European Union may block the sale of its U.K. mobile unit O2.
On the positive side, Deutsche Post advanced 2.6% after Germany controlled postal services operator reported double-digit profit growth after reorganizations.
Norwegian publisher Schibsted surged 12.5% after posting first-quarter core earnings ahead of expectations.
In the U.K, losses were limited by a strong surge in mining stocks as the U.S. dollar continued to decline and made the dollar-denominated commodity prices more attractive.
The dollar fell against most major currencies, down 0.46% against the euro to €0.8751 and losing 0.72% against the yen to ¥108.5530.
Among mining shares, Randgold Resources soared 5.4%, Anglo American PLC jumped 4.9%, Fresnillo gained 3.9%, and BHP Billiton was up 1.6%.
U.K. manufacturing output increased 0.1% in March, below expectations. The data, however, showed an improvement from a contraction of 0.9% in February.
Overall industrial production grew 0.3% in March, but fell 0.4% in the first-quarter from a year ago quarter.
In London, the FTSE 100 inched down12.58, or 0.20%, to 6,144.07, while in Frankfurt, the DAX index dropped 73.43, or 0.73%, to 9,972.01.
In Paris, the CAC 40 index fell 31.83, or 0.73%, to 4,306.83.
Banco Popolare SC
plunged 8.9% to €4.41 after surprisingly reporting a first-quarter loss of €314 million due to loan write-downs.
The write-downs were a condition of the European Central Bank for the approval of the planned merger with Banca Popolare di Milano.
Earlier in the day, the stock was down 14% to record low.
lost 2.6% to 616.5 Danish kroner after the brewer posted a 3% decline in first-quarter revenue to 13.01 billion kroner due to decline in the Chinese market and foreign exchange fluctuation.
The company did not disclose its profit, but expects low single-digit organic operating profit growth in 2016.