European stocks fall for first session in 3 on on weak earnings reports

Economies.com
2019-07-30 11:47AM UTC

European stocks fell on morning trade on Tuesday for the first time in three sessions as sentiment was hit by a series of weak earnings reports from major companies in the second quarter, while the British market reflected the opposite of the trend in Europe as the pound continued to fall sharply against a basket of World currencies.

 

As of 11:05 GMT,  Stoxx Europe 600 fell 1.1% and the index ended yesterday's sessions up by less than 0.1%, the second consecutive daily gain.

 

The index fell on Tuesday morning, with most of Europe's main stock exchanges and sectors in the red zone.

 

Lufthansa shares fell more than 5% after the German airline reported a drop in second-quarter profit, on rising fuel costs and price wars, as it said that the European market will likely continue to face challenges this year.

 

Bayer shares fell more than 4% after the pharmaceuticals company said it is becoming harder to meet year-round profit targets, referring to its activities in the US hurt from floods and trade conflicts.

 

Meanwhile, the United States and China are due to resume direct trade talks on Tuesday in Shanghai, and hopes for a major breakthrough this week remain widely questioned.

 

Investors are closely following the US Federal Reserve's monetary policy meeting on Tuesday and Wednesday, with US interest rates widely expected to be cut by 25 basis points in a precautionary measure to protect the world's largest economy from global and local risks.

 

S&P 500 futures fell more than 0.5%, and the index ended yesterday's session on Wall Street down by 0.2%, on correction and profit taking, after hitting a new record high at 3,027.98 points in the previous session.

 

In Europe, the Euro Stoxx 50 index fell by 1.1%, while in France, the CAC 40 index shed 0.9%, with Germany's DAX falling by 1.6% to top the list of losing markets in Europe.

 

In London, the FTSE 100 added 0.2%, as opposed to the trend in Europe, as the pound fell sharply against a basket of global currencies, hitting a new 28-month low against US dollar.

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