European stocks decline on financials; DAX sheds 0.11%
Investing.com
Published Nov 08, 2010 05:33AM ET
During European morning trade, the EURO STOXX 50 was down 0.36%; France’s CAC 40 fell 0.12%; while Germany's DAX shed 0.11%.
In earnings news, shares in Germany’s second-largest lender Commerzbank plunged 3.56% after it reported lower-than-expected third-quarter earnings. The lender posted a third-quarter net-income of EUR 113 million, compared to a loss of EUR 1.06 billion a year earlier, disappointing analyst expectations for third-quarter earnings of EUR 148 million.
Elsewhere within the financial sector, shares in Spain’s second-biggest bank BBVA tumbled 1.49%, Italian lender Unicredit saw shares fall 1.06%, while Britain’s largest lender Barclays saw shares decline 1.46%.
In London, the FTSE 100 fell 0.21% as shares in aerospace-engine specialist Rolls-Royce tumbled 2.17% after Australian airliner Qantas Airways said it discovered leaks in three Rolls-Royce engines in its Airbus A380 super-jumbo jets, following last week's mid-air engine failure.
Meanwhile, shares in the commodity sector underperformed as metal prices retreated. Shares in the world’s largest mining group BHP Billiton were down 0.64%, copper producer Xstrata saw shares tumble 1.16%, while gold producer African Barrick Gold saw shares plummet 2.91% after Goldman Sachs downgraded the stock to ‘sell’.
The outlook for U.S. equity markets, meanwhile, was downbeat ahead of earnings reports from the largest U.S. foodservice distributor Sysco and from steel-maker General Steele.
The Dow Jones Industrial Average futures pointed to a drop of 0.15%, S&P 500 futures pointed to a decrease of 0.25% and Nasdaq 100 futures indicated a loss of 0.21%.
Later in the day, two members of the Federal Reserve Open Market Committee, James Bullard and Kevin Warsh, are to deliver speeches. Their comments will be closely watched for clues to the future direction of monetary policy.
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Written By: Investing.com
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