Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

European stocks recoup most losses; weak outlook hits SAP

Stock MarketsOct 21, 2021 12:23PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, October 8, 2021. REUTERS/Staff

By Anisha Sircar and Susan Mathew

(Reuters) -European stocks steadied at six-week highs on Thursday, as buying of defensives and growth stocks helped offset losses in miners and disappointing earnings forecasts, including from software major SAP.

Sentiment was also subdued by renewed concerns about China's property sector after the collapse of a $2.6 billion asset sale at indebted developer China Evergrande Group.

After declining as much as 0.6%, the Europe-wide STOXX 600 index ended down 0.1% at 469.71. A European equity strategist at Bank of America (NYSE:BAC) had earlier this month set a year-end target of 420 for the STOXX 600, implying a fall of about 10% from current levels.

European miners, which have a large exposure to China, shed 3.0% as iron ore and base metal price plunged. [MET/L] [IRONORE/] UK-listed shares of Anglo American (LON:AAL) fell 2.7% even though it reported a 2% rise in overall production in the third quarter.

"Mining stocks have been unable to shake investor concerns sparked by yet another twist in the Evergrande saga," said Danni Hewson, a financial analyst at AJ Bell.

Data on Wednesday showed euro zone consumer confidence fell by 0.8 points in October from September.

Company after company has warned that supply issues and price hikes aren't going to be a flash in the pan and are going to impact earnings going forward, AJ Bell's Hewson said.

Europe's most valuable tech company SAP dropped 3.2% and was the biggest drag on the STOXX 600 despite positive third-quarter results as traders were unimpressed by the company's outlook, particularly its licensing forecast.

Swiss engineering and tech group ABB tumbled nearly 6.2% after it lowered its full-year sales forecast and warned of shortages of components, while Sweden's AB Volvo fell about 0.4% after it said chip shortages hampered production of its trucks.

Nordic Semiconductor plunged 12.4% after its core earnings fell slightly year-on-year and the company warned of rising costs.

There was no relief for banking stocks either. The sector fell 0.4% even though UK's Barclays (LON:BARC) and Finland's Nordea reported upbeat quarterly results.

Spain's lender-heavy IBEX index slipped 0.8%, the most among regional peers, after downbeat earnings at Bankinter weighed.

Defensive sectors such as personal and household goods index rose 0.8% on the back of Unilever (NYSE:UL)'s third-quarter earnings beat.

Luxury stocks were also higher after Birkin bag maker Hermes rose 1.4% on strong quarterly sales.

Cartier-owner Richemont advanced 0.4% after HSBC raised the brand to "buy" from "hold", citing its leadership and momentum in the jewellery industry.

European stocks recoup most losses; weak outlook hits SAP
 

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.
Comments (2)
SADIK MAHAMED SADIK MAHAMED
SADIK MAHAMED SADIK MAHAMED Oct 21, 2021 5:48AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
lt needs to go down again....
Jason Park
Jason Park Oct 21, 2021 5:07AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It needs to go down again.
Theresa Davis
Theresa Davis Oct 21, 2021 5:07AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
thanks
 
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