Zalando lowers profit view; eurozone retail sales outstrip expectations
European stocks wobbled around their highest in a year Tuesday, aided by gains for energy shares as oil prices continued to march up, but shipping conglomerate Maersk A/S was among the companies whose shares were shoved lower following earnings updates.
What markets are doing: The Stoxx Europe 600 was down less than 1 point at 396.52. It's been darting between small gains and losses, but it hasn't strayed far from its 52-week closing high of 396.77 logged Nov. 1, according to FactSet data.
Oil and gas, basic materials, telecom and financial shares were up. But health care, tech, industrial and consumer-related shares struggled. On Monday, the regional benchmark rose 0.1% (http://www.marketwatch.com/story/european-stocks-step-back-from-record-high-as-banks-lose-ground-2017-11-06).
Germany's DAX 30 index was up 0.1% at 13,477.41, not far from its record close notched on Friday. France's CAC 40 flipped down for a fractional loss at 5,506.69.
Spain's IBEX 35 was off 0.1% at 10,302.60 and the U.K.'s FTSE 100 turned down 0.2% to 7,550.69 after finishing at a record on Monday.
The euro traded at $1.1560, down from $1.1571 late Tuesday in New York.
What's moving markets: The Stoxx Europe 600 Oil & Gas Index leapt 1% as oil prices held around around two-year highs (http://www.marketwatch.com/story/oil-prices-hover-at-2-year-highs-as-investors-watch-for-fallout-from-saudi-shake-up-2017-11-06), although WTI and Brent futures started to take a breather during European trade. Brent crude remained above $64 a barrel.
The worst-performing stocks on the Stoxx 600 were those that issued financial updates. Shares of Zalando SE were losing the most in four months after the German retailer lowered its profit outlook. Elsewhere in the sector, a lackluster report on U.K. sales dampened shares of London-listed retailers. Retail sales rose 0.2% in October, the slowest rate of growth since May, according to figures from the British Retail Consortium and KPMG.
But eurozone retail sales figures released Tuesday came in above expectations.
The euro bought $1.1571, down from $1.1610 late Monday in New York.
Stock movers: Siemens Gamesa Renewable Energy SA (SGRE.MC) shares tumbled 7.8% after the wind turbines maker reported weaker-than-expected fiscal 2017 results (http://www.marketwatch.com/story/siemens-gamesa-drops-on-job-cuts-missed-targets-2017-11-07) and said it could reduce its workforce by more than a fifth.
A.P. Moeller-Maersk A/S (MAERSK-B.KO) fell 4.1% as the Danish shipping and oil conglomerate swung to a net loss for the third quarter (http://www.marketwatch.com/story/maersk-slides-to-loss-as-cyberattack-hits-profit-2017-11-07) after booking a $1.75 billion impairment charge in Maersk Drilling.
Zalando shares (ZAL.XE) fell 4.5% as the company forecast fourth-quarter adjusted EBIT margin to be slightly below last year's level (http://www.marketwatch.com/story/zalando-swings-to-loss-despite-29-revenue-rise-2017-11-07), leading to a full-year adjusted EBIT margin of slightly below 5%. Zalando previously expected adjusted EBIT margin in the lower half of the 5% to 6% range.
Imperial Brands PLC (IMBBY) shares rose 2% after the tobacco giant said it plans a 10% rise in its final dividend (http://www.marketwatch.com/story/imperial-brands-2017-profit-rises-tops-forecasts-2017-11-07) and said its "growth brands" performed strongly during fiscal 2017.
Dialog Semiconductor PLC (DLG.XE) dropped 7.8% even as Apple supplier posted a rise in operating profit for the third quarter.
G4S shares (GFS.LN) sank 5.5% after the world's largest security provider said in a trading update (http://www.marketwatch.com/story/g4s-revenue-grows-says-trading-in-line-2017-11-07) that it expects full-year revenue growth of between 3% to 4%, compared with its August forecast for revenue growth in 2017 of 4% to 6%.
Shares of U.K.-based retailers Marks & Spencer Group PLC (MKS.LN) and Next PLC (NXT.LN) fell 1% and 0.4%, respectively, after the BRC sales report.
Economic docket: Eurozone retail sales rose 0.7% in September on a month-over-month basis, above expectations of 0.6% in FactSet survey of economists. Year-over-year sales growth of 3.7% outstripped the 2.9% consensus estimate.
(END) Dow Jones Newswires
November 07, 2017 06:14 ET (11:14 GMT)