European shares weaker as Ericsson slump sours mood

LONDON, July 18 (Reuters) – European shares fell on Tuesday
on the back of a disappointing set of results from bluechips
including Ericsson and Lufthansa, while scaled-back expectations
of rate hikes at central banks spurred some profit-taking in

The pan-European STOXX 600 was down 0.3 percent.
The basic resources sector fell more than 1 percent
while banks were down 0.5 percent.

Ericsson dropped 8.5 percent after cutting its
forecast for the mobile infrastructure market and reporting a
wider than expected loss, a further blow to the company
undergoing a cost-cutting effort.

Zalando weighed on the retail index after
it reported slowing sales growth, with the German online
retailer’s co-CEO saying capacity constraints limited growth as
new warehouses came on stream.

German airline Lufthansa fell 3.8 percent, the
worst DAX performer, despite upping its profit forecast after a
bumper summer of bookings.

UK peers International Consolidated Air and EasyJet
were among top FTSE 100 losers.

Norwegian fertilizer company Yara fell 5.7 percent
after its quarterly earnings were dented by a squeeze in

Among boosts to the index were British spread-betting firm
IG Group, leading gainers after reporting an increase in
annual profit, beating analysts’ estimates.

Struggling UK mid-cap Carillion rose more than 8
percent after more contract wins. The stock is now up for than
50 percent from last week lows.

Britain’s second largest listed property developer British
Land jumped 2.7 percent after announcing a 300 million
pound share buyback and among the top performers on the STOXX

Analysts at Morgan Stanley last week predicted European
share buybacks would accelerate as corporates react to a happy
combination of better economic growth and solid balance sheets.
(Reporting by Helen Reid, Editing by Vikram Subhedar)

Leave a Reply

Your email address will not be published.