(Reuters) – European equities fell back from their eight-month highs on Wednesday as concerns over China's policy easing efforts offset the region's positive performance Credit Suisse (SIX 🙂 and SAP.
The supraregional index declined by 0.1 percent at 0732 GMT. The benchmark index has posted gains over the past eight consecutive sessions, with the trend recovering from a weaker open.
Asian equities were also weak, despite peaking overnight due to rising yields as investors worried that Beijing would slacken the world's second-largest economy. [MKTS/GLOB]
The Germans had a profit before the ifo business climate data of the country, which were due at 08:00 GMT, while all other major regional exchanges were red-earning.
Auto shares fell 1 percent, led by Renault (PA) After its Japanese partner Nissan Motor Co slipped its full-year earnings guidance to its lowest level in almost a decade due to weakness in the US.
US President Donald Trump said on Tuesday that European Union tariffs against motorcycle manufacturer Harley Davidson Inc. were "unfair" and swore to reply but did not provide any further details.
The online gaming company Kindred Group plc ended up in STOXX 600 after the first quarter's earnings were significantly impacted by a new local license in Sweden.
The oil and gas sector retreated following a 2% rise in the previous session due to higher crude oil prices.
Swiss lender Credit Suisse, which announced its first quarter balance sheet for banks in the region, rose 3 percent after seeing a surprise gain. The second quarter was cautiously optimistic after a challenging start to the year.
The results of Credit Suisse will be those of UBS Group AG and Barclays (LON 🙂 on Thursday and German bank (DE 🙂 on Friday.
Front runners on STOXX 600 were the payment company Wirecard and the company for enterprise software SAP, which also kept the German DAX afloat.
Wirecard gained 8 percent after reporting from Bloomberg that the Japanese Softbank intends to invest around 900 million euros ($ 1 billion) in a minority stake in the company.
SAP climbed 6 percent, boosting the technology sector by 1.9 percent as the company set ambitious new medium-term profit margin targets after reporting an operating loss in the first quarter, mainly due to restructuring charges.
Healthcare shares rose on Novartis earnings as the Swiss pharmaceutical company increased its forecast for 2019 after a first-quarter profit and revenue hit.
Swedish truck maker AB Volvo rose after reporting better operating results than in the first quarter due to increased pricing and easing of supply chain constraints.
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