Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Daimler drives European shares lower as data stirs more fears

Stock MarketsNov 14, 2019 05:01AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

By Sruthi Shankar

(Reuters) - European shares dipped on Thursday, as a warning from German carmaker Daimler and lackluster economic data from Asia and Europe countered a handful of positive corporate updates.

By 0929 GMT, the pan-European STOXX 600 index (STOXX) slipped 0.1%, with German shares (GDAXI) dropping 0.2%.

Data showed Germany's economy narrowly avoided slipping into recession in the third quarter but growth remained close to zero and that in central and eastern European economies that rely heavily on its demand are crumbling.

Daimler (DE:DAIGn) dropped about 3% after the carmaker said tougher emissions rules would hit earnings in 2020 and 2021, forcing it to seek more than 1 billion euros on staffing costs at Mercedes-Benz by the end of 2022.

"Clearly, either side of zero is not great. It doesn't indicate a strong German economy," said Chris Bailey, European strategist at Raymond James.

"The thoughts now are to what extent will you see the German authorities stimulate their economy."

Daimler's warning spurred a 1% fall in the European auto index (SXAP), leading declines among the major sectors.

Other numbers on Thursday showed China's factory output growth slowed significantly more than expected in October and Japan's economy ground to a near standstill.

The gloom took European shares further from a four-year peak hit last week driven by optimism about the chances of a 'phase one' trade deal between the United States and China and some better-than-expected earnings.

Shares in Germany's biggest electricity producer (DE:RWEG) also fell 2.5% and science and technology company Merck KGaA (DE:MRCG) dropped 1.5% despite raising their 2019 forecasts.

The STOXX 600's biggest gainer was genetic testing company Qiagen (DE:QIA), up 13.1% after Bloomberg reported scientific instruments maker Thermo Fisher Scientific (N:TMO) had approached company about a potential deal.

Defensive sectors including real estate (SX86P), utilities (SX6P) and healthcare (SXDP), considered safer during times of economic uncertainty, also inched higher.

London's FTSE 100 (FTSE) was down 0.4% as a drop in private equity company 3i (LON:III) and a handful of stocks trading ex-dividend overshadowed an earnings-driven surge in luxury brand Burberry .

Burberry's shares (L:BRBY) rose about 6% after it said the popularity of collections by designer Riccardo Tisci boosted sales in its second quarter.

Official data showed British consumers, whose spending has helped the economy weather three years of Brexit turmoil, cut back on their shopping in October, adding to signs of weak overall economic growth.

Daimler drives European shares lower as data stirs more fears

Related Articles

Is UP Fintech a Buy Under $10?
Is UP Fintech a Buy Under $10? By StockNews - Oct 18, 2021

Shares brokerage company UP Fintech (TIGR) have been advancing in price thanks to the company’s enhanced platform capabilities. However, given that TIGR reported...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email