European Shares Retreat On Evergrande Woes

Business

European stocks were moving lower on Thursday as investors digested mixed earnings results and reacted to news about the collapse of a $2.6 billion asset sale at heavily indebted developer China Evergrande Group.

China Evergrande reportedly won a more than three month extension to the maturity of a $260 million bond, a day after a deal to sell a $2.6 billion stake in its property services unit failed.

The pan European Stoxx 600 was down 0.2 percent at 469.31 after having risen 0.3 percent on Wednesday to reach its highest level in six weeks.

The German DAX edged down 0.1 percent, France’s CAC 40 index slipped 0.4 percent and the U.K.’s FTSE 100 was down 0.3 percent.

Miners Glencore and Anglo American fell 3-4 percent in London on fears that Evergrande’s debt troubles could hit China’s broader economic recovery.

Instrumentation company Spectris rose over 1 percent after putting on a solid third-quarter trading performance.

Swiss engineering and tech group ABB plunged 5 percent after lowering its full-year sales guidance.

Online pharmacy Zur Rose lost 6.8 percent despite the company reporting significant revenue growth in all markets.

Consumer goods giant Unilever jumped 3.2 percent after its third-quarter sales growth beat forecasts.

Online food ordering company Just Eat Takeaway.com dropped 2 percent despite backing its FY21 view.

French railway company Getlink lost 2 percent after reporting a fall in third-quarter revenue.

Carrefour advanced 1.6 percent. The retailer kept its guidance for FY 2021 net free cash flow “comfortably” above 1 billion euros.

Software AG rallied 2.6 percent after reporting a rise in Q3 profit.

SAP advanced 1.3 percent. The software group confirmed its preliminary third-quarter results and full-year guidance.

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