Thyssenkrupp, Telecom Italia tumble on results
European stocks ended Friday’s session slightly weaker, but managed to eke out a gain for the week, amid global growth jitters, a hawkish Federal Reserve and earnings disappointments in some big corporations.
What are markets doing?
The Stoxx Europe 600 SXXP, -0.37% slipped 0.4% to close at 365.74, after Thursday’s modest gain. For the week, the index gained 0.5%.
Germany’s DAX 30 DAX, +0.02% ended the day little changed in positive territory at 11,529.16, while France’s CAC 40 PX1, -0.48% dropped 0.5% to close at 5,106.75. The U.K.’s FTSE 100 UKX, -0.49% finished 0.5% lower at 7,105.34.
Italy’s FTSE MIB Italy index I945, -0.88% closed 0.8% lower at 19,258.11.
The euro EURUSD, -0.2552% slipped to $1.1335 from $1.1365 late Thursday in New York,
The British pound GBPUSD, -0.6661% slid to $1.2964 from $1.3061.
What is driving the market?
Global equities took a hit from Thursday’s Federal Reserve outcome, which saw no change in key rates, but investors were rattled by a perceived hawkish tone by the central bank. The news kept investors from cheering upbeat U.K. growth data, with London stocks bogged down by worries about China growth.
Italy crept back as a worry for Europe, after the European Commission on Thursday warned that it was concerned about the country’s debt situation, and that there was “no future” for the country outside of the common currency.
Shares of Thyssenkrupp AG TKA, -3.95% closed 4% lower after the steel-and-technology group issued its second profit warning since July.
Telecom Italia SpA TIT, -4.83% ended the day 4.8% down after the Italian company reported a third-quarter loss late Thursday, owing to a write-down.
BBVA SA BBVA, -5.86% BBVA, +0.00% tumbled 5.9% into the close after Spain’s banking giant fell following a proposal by Mexico’s parliament to cut banking fees. Following the European close, Mexican President-elect Andrés Manuel López Obrador walked back promises of banking regulation.
Heavily weighed energy stocks fell alongside crude oil prices—U.S. crude fell into a bear market on Thursday. Royal Dutch Shell Group PLC RDS.A, +0.37% RDSA, -0.23% ended 0.2% lower, while BP PLC BP., -0.96% BP, -0.07% finished down 1%.