European stocks tumble as Wall Street, Tokyo hit reverse
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LONDON: European stock markets tumbled on Thursday (Nov 9) on a wave of disappointing earnings reports, compounded by a weaker showing on Wall Street and a slump in Tokyo, traders said.Following declines in Asia and Europe earlier during the day, US stocks opened sharply lower, amid uncertainty over the fate of the US tax overhaul making its way through Congress."A sure sign of a market that has gotten overextended on a short-term basis is the palpable angst that arises from the sudden shift in tone," said Briefing.com analyst, Patrick O'Hare.The weaker showing on Wall Street put added pressure on main stocks indices in Frankfurt, Paris and London, which had already been in the red following the release of quarterly corporate earnings reports that fell short of expectations."Equity indices are lower, with the German DAX underperforming once again as disappointing earnings reports add to unwelcome euro strength," said Accendo Markets analyst, Mike van Dulken.In Asia, Japanese stocks had finished in the red, suffering a sharp reverse after earlier hitting fresh 26-year highs, while most other Asian indices also fell.
"Markets took their cue from a volatile session in Japan, where the Nikkei performed an impressive handbrake turn after hitting fresh multi-year highs," said IG analyst Chris Beauchamp in London."This sudden drop after the relentless gains over the past two months caught investors on the hop."China and the United States meanwhile signed more than US$250 billion in business deals, including US$37 billion worth of Boeing planes, as US President Donald Trump held talks with Chinese counterpart Xi Jinping in Beijing.Trump criticised Beijing's "one-sided and unfair" trade surplus with his country, but said he did not blame China for the situation, instead hitting out at past White House administrations "for allowing this out-of-control trade deficit to take place and to grow".
On the upside in Asia, Shanghai rose 0.4 per cent and Hong Kong advanced 0.8 per cent, with traders cheering forecast-beating inflation figures from China that provided fresh hopes the huge economy is stabilising.BURBERRY OVERHAUL SPOOKS INVESTORSIn London, shares in British luxury fashion giant Burberry slumped on disappointing earnings and a costly strategy overhaul.The group's share price tumbled 9.32 per cent to £18, topping London's fallers board."Burberry posted a 24 per cent jump in first-half pre-tax profits, but it still missed expectations," noted Madden."Traders were more interested in the company's plans - which involves focusing more on the high end of the luxury goods market. The stores they are retaining will be revamped at a high cost, and this is spooking traders."In Denmark, shares in Vestas, the world's largest wind turbine manufacturer, tumbled nearly 20 per cent after the Danish firm tweaked its annual outlook and its quarterly net profit slid.By later afternoon, its shares were down 19.1 per cent to 426.60 kroner (€57.33, US$66.72), in a market down 2.8 per cent overall.Key figures around 1640 GMT:New York - DOW: DOWN 0.6 per cent at 23,426.45 points
London - FTSE 100: DOWN 0.6 per cent at 7,484.10 (close)
Frankfurt - DAX 30: DOWN 1.5 per cent at 13,182.56 (close)
Paris - CAC 40: DOWN 1.2 per cent at 5,407.75 (close)
EURO STOXX 50: DOWN 1.1 per cent at 3,613.41 (close)Tokyo - Nikkei 225: DOWN 0.2 per cent at 23,868.71 (close)
Hong Kong - Hang Seng: UP 0.8 per cent at 29,136.57 (close)
Shanghai - Composite: UP 0.4 at 3,427.79 (close)Euro/dollar: UP at US$1.1641 from US$1.1619
Pound/dollar: UP at US$1.3124 from US$1.3105
Dollar/yen: UP at 113.58 yen from 113.46 yenOil - Brent North Sea: UP 47 cents at US$63.96 per barrel
Oil - West Texas Intermediate: UP 45 cents at US$57.26
Source : http://www.channelnewsasia.com/news/business/european-stocks-tumble-as-wall-street-tokyo-hit-reverse-9392434