Stocks

European shares hit by disappointing updates

Reuters Milan | Updated on February 23, 2018 Published on February 23, 2018

The pan-European STOXX benchmark index was flat in percentage terms by 0817 GMT, while the UK’s FTSE dipped 0.2 per cent and Germany’s DAX was flat.

European shares were little changed in early deals on Friday as investors digested a flurry of earnings updates, with French auto parts maker Valeo and Royal Bank of Scotland among the top fallers.

Valeo slumped 9 per cent to a six-month low as its second-half profit fell on adverse exchange rates and raw material prices, while RBS declined 4 per cent after posting its first full-year profit since 2007. Traders said the underlying result missed expectations.

Oil services firm Subsea 7 jumped 6.3 per cent after news of joint venture talks with larger rival Schlumberger , and strength among telecoms stocks, which led sectoral gainers, up 1 per cent.

Telecoms were lifted by a 3.1 per cent rise in BT Group after Britain's telecom regulator OFCOM detailed rules encouraging more fibre broadband investment -- including a decision not to regulate wholesale prices of some superfast broadband products sold by its Openreach division.

The pan-European STOXX benchmark index was flat in percentage terms by 0817 GMT, while the UK’s FTSE dipped 0.2 per cent and Germany’s DAX was flat. The STOXX is set to end the week flat as markets stabilise and volatility calms following a turbulent start of the month that sent the index to a near-six-month low. The STOXX is now 3.5 per cent above that low.

Published on February 23, 2018
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