Stocks continue losing streak in Europe

European stocks continued their losing streak as the latest batch of earnings failed to lift investor sentiment rendered gloomy by the lacklustre economic backdrop. Investors were reported to be taking “some money off the table” as fears circulated that the next batch of corporate results would underwhelm.

US stocks also declined in early trading, amid lingering concerns that weak global growth will weigh on the American economy.

DUBLIN

The Iseq closed down 0.3 per cent as its two biggest stocks had contrasting fortunes. Building materials group CRH fell 1.2 per cent to €24.46 as a peer reported margin pressure in the US market.

Ryanair advanced 1.3 per cent to €12.98 on a day that saw positive first-quarter numbers from Air France KLM, while Ryanair's own traffic numbers for April showed traffic growth of 10 per cent. Chief executive Michael O'Leary said the airline was on track to overtake EasyJet as the largest UK carrier.

Paddy Power Betfair fell 2.1 per cent to €113.25. The bookmaker's first-quarter revenue missed forecasts due to unfavourable sports results.

The Green Reit closed up 1 per cent at €1.46. After the close of markets, the Irish Residential Properties Reit, which finished down 0.8 per cent at €1.10, released a trading statement which said it had generated €4.1 million of net income in the first quarter up from €2 million in the same period last year.

Paper and packaging group Smurfit Kappa, which is due to give an update on its first-quarter earnings tomorrow, closed more or less flat at €22.61.

LONDON

The FTSE 100 index fell 1.2 per cent, sinking deeper into the red after commodity stocks and supermarkets slumped.

BHP Billiton dragged mining stocks lower, falling 5.8 per cent. Glencore and Anglo American also finished down as oil prices retreated. Sentiment wasn't helped by a manufacturing update from China that showed activity shrank for the 14th consecutive month in April. Sainsbury's closed more than 6 per cent lower after it reported a hit to annual profits and a 0.9 per cent fall in like-for-like sales as a result of a long-running supermarket price war. Tesco also took a tumble after a report from Kantar Worldpanel showed its share of the UK grocery market had slipped. Oil giant Shell fell 2.2 per cent as its first-quarter profits plunged 58 per cent to £1.1 billion.

London Stock Exchange Group fell 4.2 per cent after Intercontinental Exchange (ICE) said it wouldn't bid for the bourse operator. The decision clears the way for Deutsche Boerse to combine with the British exchange in a deal that would create the biggest operator in Europe.

The biggest gainer on the FTSE 100 was Next, despite a warning from the retailer about a wider slowdown in consumer spending in Britain.

EUROPE

The Stoxx Europe 600 Index dropped 1.1 per cent to 331.8 at the close of trading, as equities continued to lose momentum. The Cac 40 in France was 1.1 per cent lower, while Germany’s Dax fell 1 per cent.

Anheuser-Busch InBev slipped 1.6 per cent after the world's largest brewer posted sales and profit growth that missed analysts' estimates. Société Générale added 1.7 per cent after reporting an unexpected increase in earnings.

Siemens advanced 1.4 per cent after posting higher-than-forecast second-quarter profit, as contracts for power plants in Egypt and wind turbines in the UK boosted its order books. Deutsche Boerse jumped 5.8 per cent as the path was cleared for it to merge with the London Stock Exchange Group.

US

Wall Street stocks fell, with bank shares among those posting the steepest losses for a second day.

Bank of America

and Citigroup fell at least 2 per cent.

Energy and raw material producers lagged for a third consecutive session. – (Additional reporting: Bloomberg)