European Stocks Fall as L'Oréal Leads Disappointing Results
European stocks fell after a sluggish session on Wall Street, weighed down by disappointing results from L'Oréal SA and Hermes International SCA.
The Stoxx Europe 600 fell 0.3% as of 8:17 a.m. in London. The technology sector fell 1.2% after Texas Instruments Inc. provided a weaker-than-expected outlook, adding to concerns that the semiconductor industry's recovery is faltering. Meanwhile, mining and energy stocks led gains.
Britain's FTSE 100 Index outperformed, rising 0.5%, as easing inflation reinforced expectations that the Bank of England will cut interest rates in the coming months. L'Oréal fell 6.8% after reporting disappointing third-quarter sales growth as weakness in the U.S. outweighed signs of improvement in China. Hermes International fell 4.4% after its key leather goods division missed estimates. In other individual stocks, Barclays Plc rose 2.6% after the British lender raised its return on tangible equity guidance for the year and announced a £500 million ($666 million) buyback.
“The most interesting thing for me today at a micro level is the reaction to some of the bank results,” said UBS strategist Gerry Fowler. “We think there will continue to be surprises on costs, which means more improvement in the banking sector, which is why it's one of our favorites in Europe.” (asd)
Source: Newsmaker.id
