European stocks snapped a week-long winning streak, weighed down by a batch of disappointing updates from blue-chip companies including Swiss food group Nestle and French bank BNP Paribas.
Shares in Nestle fell 1.4 percent after it said it may undershoot its long-term growth targets again this year due to weaker demand from emerging markets (EM) and price pressures in Europe.
French spirits group Pernod Ricard also warned about weak demand in China on Thursday as it cut its annual profit growth goal.
The pan-European FTSEurofirst 300 index was down 0.2 percent at 1,323.86 points, falling for the first time in seven sessions. The Euro STOXX 50 index was down 0.3 percent at 3,085.30.
Britain’s Rolls Royce, the world’s second-largest aircraft engine maker, was the top faller on the FTSEurofirst 300, down 11.4 percent, after it forecast declining defence aerospace and marine revenues in 2014.
Also weighing on the index were banks BNP Paribas and Banking Group, down 4.3 percent and 3.7 percent, respectively, after their quarterly updates.
BNP Paribas reported a 76 percent drop in quarterly profit after booking a $1.1 billion litigation provision, triggering a downgrade to «hold» from «accumulate» at CM-CIC Securities.
Bucking the sector trend was Germany Commerzbank, which rose 3.1 percent after posting a small profit in the fourth quarter of 2013 and showing its restructuring had gained traction.
Nearly halfway through Europe’s earnings season, 58 percent of European companies have met or beaten quarterly profit forecasts, their best score since the third quarter of 2012, according to Thomson Reuters StarMine data.
Meanwhile, Japan’s Nikkei average slid nearly 2 percent, snapping a three-day winning streak, as investors cautiously awaited US economic data and sold shares across the board. The Nikkei ended 1.8 percent or 265.32 points lower at 14,534.74, marking its biggest daily percentage drop in a week. On Wednesday, it had notched a 1-1/2-week closing high.
The broader Topix fell 1.6 percent to 1,199.74, with all of its 33 subsectors in negative territory.
Source: Buenos AIres Herald