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Stocks - European Markets Open Lower After Mixed Earnings Reports

Published 02/02/2018, 03:41 AM
© Reuters.  Frankfurt Stock Exchange
UK100
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FCHI
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DE40
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STOXX50
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HSBA
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BARC
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LLOY
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NWG
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DBKGn
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CBKG
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BNPP
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SOGN
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BBVA
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SAN
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IFXGn
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VOD
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RIO
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CPI
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BHPB
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ANTO
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BT
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ISP
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CRDI
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ESM24
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1YMM24
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NQM24
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LIGHT
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Investing.com - European markets opened lower on Friday, following a flurry of mixed earnings reports and as rising bond yields continued to weigh on global equities.

The EURO STOXX 50 slid 0.33%, France’s CAC 40 declined 0.55%, while Germany’s DAX 30 was down 0.70% by 03:40 a.m. ET (07:40 GMT).

Equity markets continued to be pressured lower by climbing bond yields. More specifically, the yield on the 30-year U.S. Treasury bond rallied more 3% for the first time since last May on Thursday, boosted by the Federal Reserve's hawkish policy statement.

Financial stocks were broadly lower, as French lenders Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) declined 0.68% and 0.42%, while Germany's Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) tumbled 0.91% and 5.61%.

Deutsche Bank earlier reported a net loss of about €497 million euros for 2017, which was also its third consecutive annual loss.

Among peripheral lenders, Italy's Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) fell 0.32% and 0.26% respectively, while Spanish banks Banco Santander (MC:SAN) and BBVA (MC:BBVA) slid 0.25% and 0.78%.

Elsewhere, Philips Lighting NV (AS:LIGHT) eased 0.09% even after reported better-than-expected core fourth quarter results.

Infineon Technologies AG NA O.N. (DE:IFXGn) added to losses, with shares down 1.15% after the group on Thursday reported lower than-expected first-quarter fiscal 2018 earnings.

In London, FTSE 100 slipped 0.16%, weighed by Vodafone (LON:VOD), whose shares plummeted 2.92% after the company on Thursday reported a 3.6% slump in fourth-quarter total group revenue, weighed by a stronger euro and the creation of a new joint venture in the Netherlands.

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BT Group (LON:BT) wasn't very far behind, as shares lost 2.69% after the firm said costs related to pensions, business rates and its investments weighed on third-quarter profits, but left its full year guidance unchanged.

In the financial sector, stocks were also broadly lower. Lloyds Banking (LON:LLOY) eased 0.09% and HSBC Holdings (LON:HSBA) fell 0.23%, while Barclays (LON:BARC) dropped 0.59% and the Royal Bank of Scotland (LON:RBS) tumbled 1.41%.

Meanwhile, Capita PLC (LON:CPI) bounced back from recent losses to become one of the top performers of the index on Friday, with shares surging 7.43%.

Capita shares had plummeted after the company on Wednesday issued a profit warning for 2018 and its new Chief Executive Jonathan Lewis declared the group “too complex”, “driven by a short-term focus” and “lacking operational discipline and financial flexibility”.

Mining stocks were also mostly higher, as BHP Billiton (LON:BLT) rose 0.33% and Rio Tinto (LON:RIO) climbed 0.52%, while rival group Antofagasta (LON:ANTO) jumped 1.15%.

In the U.S., equity markets pointed to a mixed open. The Dow Jones Industrial Average futures pointed to a 0.42% drop, S&P 500 futures signaled a 0.36% slide, while the Nasdaq 100 futures indicated a 0.22% fall.

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