4:00 PM Frankfurt ECB held interest rates and lowered economic growth outlook. Cobham wins a contract from Airbus. Johnson Matthey net declined 24%. Ryanair traffic in May surged 12% and the discount airline cut baggage fees by 50%. Munich Re plans to lay off 1,800 employees. Voestalpine forecasted steel prices will be stable in Europe.
Markets across the euro zone trended lower and the European Central Bank left key lending rate on hold as expected.
The central bank modestly revised higher the outlook for growth and inflation and after the announcement oil quickly traded down but still hovered near $50 mark.
ECB President Mario Draghi lifted inflation outlook to 0.2% from 0.1% this year and modestly revised higher the growth outlook for 2016 but trimmed growth estimates for 2018.
Oil traded lower after OPEC members failed to agree on supply quota as member nations struggled with falling revenues and rising national budget deficits.
In London trading, FTSE 100 index fell 1.35 to 6,190.48 and in Frankfurt the DAX index slid 13.93 to 10,189.62.
In Paris, CAC 40 index slipped 17.92 or 0.4% to 4,456.85.
slipped 1.4% to 135.80 pence after the U.K.-based aerospace and defense specialist was awarded a contract worth about several hundred million dollars from Airbus to supply its new digital Radio and Audio Integrated Management System for the A320neo aircraft family.
Johnson Matthey Plc
jumped 3.1% to 2,914 pence after the U.K.-based specialty chemicals maker said revenues in the fiscal year ending in March advanced 6.5% from a year ago to £10.7 billion.
Profit in the year declined 23.8% from a year ago to £325.7 million compared to £427.3 million and diluted earnings per share fell 165.7 pence from 210.7 pence.
The catalysts maker said operating profit in the year dropped 5% to £418.9 million from £532.8 million in a year ago period.
Ryanair Holdings Plc
slid 3 cents to 13.93 after the Ireland-based budget airliner said total traffic in May surged 12% to 10.6 million passengers from 9.5 million passengers in a year ago month and load factor rose 2% to 94% from a year ago month.
From today onwards, Ryanair had reduced its baggage fees by almost 50% for the majority of its customers and 15 kg bag on a domestic flight for less than two hours will cost 15 from the earlier cost of 30 and 20 kg bag will now cost 25 from the previous 40.
However, the budget airliner cancelled 75 flights on Thursday after French air traffic controllers went on strike.
slumped 2.2% to 163 after the Germany-based insurance companys subsidiary ERGO Insurance Group said its plans to lay off 1,800 employees under restructuring plan with the aim of saving $1.1 billion and complete the restructuring by 2020 and also exit from 18 locations in Germany.
ERGO plans to reduce its cost basis by around 540 million in gross or approx 280 million in net by 2020 and also forecasted annual net profit by 2021 to contribute for more than 500 million to Munich Re.
RPC Group Plc
rose 0.6% to 807.50 pence after the plastic products maker said total group revenues in the fiscal year ending in March soared 34% from a year ago to £1.64 billion.
Profit in the year jumped 33.2% from a year ago to £54.9 million compared to £41.2 million and earnings per share edged up 19.4 pence from 19.3 pence.
soared 5.1% to 30.98 after the Austria-based steel producer reported revenues in the year ending in March slipped 1.1% from a year ago to 11.07 billion.
Net income in the quarter increased 1.2% from a year ago to 602.1 million compared to 595 million and diluted earnings per share increased to 3.35 from 3.18.
The steel producer forecasted steel prices will be stable in Europe while prices may further drop in China, as the economy slows down.