Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

European shares hit by Bayer, Lufthansa; FTSE shines

Stock MarketsJul 30, 2019 04:44AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

By Susan Mathew and Medha Singh

(Reuters) - European shares slipped on Tuesday as grim forecasts from German giants Bayer and Lufthansa soured sentiment, while a battered pound helped London's blue-chip index outperform for a second day.

Bayer (DE:BAYGn) slipped 3% as it became the latest agricultural supplies company to be affected by flooded farms in the United States and by trade disputes, saying its full-year earnings target has become harder to reach.

Airline Lufthansa (DE:LHAG) dropped 5.6% after posting a decline in second-quarter earnings and saying that the European market was likely to remain challenging this year.

That helped make Europe's travel and leisure index (SXTP) the biggest faller among major sectors, with a 1.1% drop that would be its worst in more than a month.

With concerns about global growth still bubbling among investors, a GfK survey showed German consumer morale worsening for the third month in a row heading into August as trade disputes bit in Europe's biggest exporter.

Germany's main stocks index (GDAXI) fell 0.5% by 0758 GMT, while the broader pan-European stocks STOXX 600 (STOXX) lost 0.4%.

"Most markets are down this morning," said Simona Gambarini, a markets economist at Capital Economics. "The S&P closed lower yesterday. We have a few data releases regarding the eurozone that could push equity prices down but I think everyone is waiting for the Fed meeting."

As evidence continues to build of the impact of a bruising trade war on global growth, expectations that major central banks will adopt accommodative policies have buoyed global markets since a sharp fall in May.

The U.S. Federal Reserve is widely expected to deliver a quarter-point cut in rates on Wednesday, although there is some lingering hope it could respond to President Donald Trump's call for a bigger move - or at least point the way to more easing in the near future.

London's blue chip FTSE 100 (FTSE) index was the big outperformer of the main indexes, touching fresh 11 month highs on the back of a 3% jump in shares for energy giant BP (L:BP).

The index, heavy with internationally-focused firms who get their revenue from abroad, was also supported by a drop in sterling to more than two-year lows on the rising possibility of a disorderly Brexit. [GBP/] (L)

Ireland's main stock index ISEQ (ISEQ), which tends to fall when fears of a no-deal UK departure from the European Union grow, slid 1%

London-listed BBA Aviation (L:BBA) topped the STOXX 600 with a 5.5% jump after it announced a $1.37 billion deal to sell its aircraft parts unit to private equity firm CVC Capital Partners.

British household goods maker Reckitt Benckiser (L:RB) was the biggest weight on Europe's main index after it reported lower than expected second-quarter sales and cut its full-year revenue target.

French stocks (FCHI) dipped 0.2%, hit also by data showing the economy slowed slightly in the second quarter

Lenders were also among the biggest decliners in Europe (SX7P) with bank-heavy indexes in Italy (FTMIB) and Spain (IBEX) both declining more than 0.6%.

European shares hit by Bayer, Lufthansa; FTSE shines
 

Related Articles

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 Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
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?
 
Post
 
Replace the attached chart with a new chart ?
1000
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 Investing.com'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
or
Sign up with Email