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Market Update

European Markets Fall 1% on Moderate GDP Growth


Author: Lucy Stoeva
ticker.com
Last Update: 2:42 AM ET November 13 2015

4:00 PM Frankfurt – Economic data indicates moderate growth in the euro zone; Bouygues profit tumbled 53%. Heidelberger Druckmaschinen net loss narrowed. Syngenta surged after rejected the offer of $42 billion from China National Chemical Corporation.

Third-quarter economic data from different countries in the euro zone indicated that the economies continue to expand with little or no acceleration from the previous quarter.

Investors remained cautious, and even the excitement over a potential takeover of Syngenta, did not prevent the markets from recording losses.

In London trading, FTSE 100 index slumped 61.17 or 1% to 6,118.62 and in Frankfurt the DAX index decreased 108.06 or 1% to 10,674.05.

In Paris, CAC 40 index dropped 54.35 or 1.1% to 4,802.21.

The French economy returned to growth in the third quarter, recording a GDP increase of 0.3% after a flat second quarter, according to the National Institute of Statistics and Economic Studies.

While total domestic demand accelerated, the foreign trade balance contributed negatively to the GDP change, the INSEE reported.

In Germany, Europe’s largest economy, the GDP grew by 0.3% in the last quarter. But while in France the growth was an improvement, in Germany, it represented a decline from the growth rate of 0.4% in the previous quarter.

According to the German statistical office, both consumer and government spending were on the rise.

Bouygues SA slipped 1.6% to €34.38 after the France-based conglomerate reported revenues in the nine-month period ending in September dropped 2% from a year ago to €23.8 billion.

Net profit in the period tumbled 53.1% from a year ago to €334 million and diluted earnings per share declined to €0.98 from €2.11.

The company maintained its annual forecast for the construction and television segment output and said it expected operating profit in the telecom business to jump to €750 million form €694 million in the same period a year ago.

Heidelberger Druckmaschinen AG tumbled 15.8% to €2.29 after the Germany-based packaging and printing company said revenues in the first-half ending in September soared 16.5% from a year ago to €1.2 billion.

Net loss in the period narrowed from a year ago to €13.6 million, compared to €41.9 million, and diluted loss per share slumped to €0.05 from €0.17.

The company estimated sales for the year to increase between 2% and 4%.

Syngenta AG soared 7.1% to 370.30 Swiss francs after reports that the Switzerland-based pesticides and seeds maker is on target for a takeover of about $42 billion offer from China National Chemical Corporation.

Earlier today, Bloomberg said due to regulatory concerns, Syngenta rejected initial offer of about 449 francs per share made by CNCC.

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