This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

European Stocks Slip Ahead of ECB Meeting

Stocks in this article: WYNN

LONDON ( The Deal) -- European markets retreated further on Thursday as investors digested weaker-than-expected German industrial production and another spate of corporate earnings ahead of the European Central Bank monetary policy meeting.

In London, the FTSE 100 shed 0.23% to 6,620.87, while in Germany the DAX lost 0.08% to 9,122.36. In France, the CAC 40 shaved 0.29% to 4,194.94.

Earlier in the day, Germany's Economics Ministry said that industrial output rose a seasonally adjusted 0.3% from May to June. That was well below the 1.2% monthly gain that had been expected by economists surveyed by Bloomberg News.

The latest figures from Europe's largest economy come hours before the European Central Bank is expected to hold interest rates steady. Investors will also be looking to the post-policy meeting press conference by ECB President Mario Draghi for any comments on the eurozone's economy and inflation outlook.

Escalating tensions over Ukraine also continue to weigh on global markets, after Russian President Vladimir Putin ordered a one-year ban on food imports from all countries that have imposed or supported sanctions against his country.

In Germany, Munich Re fell 2.26% to 3.49 euros after posting a lower-than-expected second-quarter profit of 765 million euros, amid rising claims costs; the latter includes 180 million euros related to a severe February snowstorm in Japan, not paid until the second quarter because of late claims reports.

Adidas was also down after cutting its 2014 profit forecast, citing continued weakness in the golf market and recent developments in Russia. The company is now projecting operating profit to amount to 5.6% to 7% of sales, compared to a previous forecast of 8.5% to 9% of sales. Adidas shares fell 2.63% to 56.62 euros.

Not all corporate news was bad. Commerzbank gained more than 2% in Frankfurt, after Germany's second-largest lender said second-quarter profit more than doubled.

In Zurich, Nestle rose 3.15% to 69.20 Swiss francs, after the world's biggest food company posted better-than-expected revenue growth in the first half. The company posted first-half sales of 43 billion Swiss francs, up 4.7% over a year ago excluding acquisitions, divestments and currency shifts.

Growth was especially strong in Latin America, with double-digit growth in most food categories, and good performances from Ninho fortified milks in the dairy category, Nescau in cocoa and malt beverages and KitKat in confectionery.

The company also announced plans to spend 8 billion Swiss francs this year and next in its first share buyback in three years. It confirmed its outlook for organic growth of around 5% this year, as well as improvements in margins, underlying earnings per share in constant currencies and capital efficiencies.

Zurich Insurance Group rose nearly 3.5% after posting a 6% rise in second-quarter profit to $837 million. CEO Martin Senn projected full-year cash remittances to exceed $3.5 billion, and said the company remains "on track" for 2014 and 2016 targets.

Asian stocks were mixed. In Tokyo, the Nikkei advanced 0.48% to 15,232. In Hong Kong, the Hang Seng fell 0.80% to 24,387.56.

Gaming companies Galaxy Entertainment Group and Wynn Macau, the Macau unit of Wynn Resorts (WYNN), both fell in Hong Kong, after Macau posted the slowest monthly growth in mass market revenue since 2010.

The report, released late Wednesday, prompted analysts at Deutsche Bank to cut their 2014 forecast for revenue growth in the global gambling capital to 6% from 4%.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs