Stock markets in Europe hovered around the flatline Thursday as investors took a breather after a strong rally on Wall Street and focused on earnings and political instability.
The pan-European Stoxx 600 was 0.02 percent lower with food and beverages stocks leading the falls on earnings news.The Belgian AB InBev reported weaker-than-expected earnings after sales dropped in Brazil. Its shares were lower by 2 percent in early deals. However, basic resources stocks were moving the highest on positive Chinese steel data.
Building materials supplier Travis Perkins was at the bottom of the European benchmark in early deals down by nearly 6 percent after a 67 percent drop in pretax profit. By contrast, Melrose industries was at the top of the Stoxx 600, up by nearly 13 percent, after posting full-year revenues nearly three times higher than expected.
The main focus seems to be earnings. Adecco, the world’s largest provider of temporary staff, reported better-than-expected fourth-quarter earnings. LafargeHolcim said Thursday that an additional 1 billion Swiss francs ($0.99 billion) are expected from divestment in 2017, and the company is ready to take part in big infrastructure projects in the U.S.
Also on the calendar is the release of the latest euro zone flash inflation and unemployment rate.
Meanwhile, the French presidential election is heating up, after authorities decided to formally investigate the conservative candidate Francois Fillon for misusing public funds. His centrist opponent Emmanuel Macron is set to outline his manifesto on Thursday morning.
U.S. equities surged to all-time highs Wednesday, the major indexes posting their best day of the year, on the back of President Donald Trump’s speech to Congress.
Source: CNBC
