European Stocks Fall as Eurozone Growth Forecasts Are Cut

LONDON ( The Deal) -- European stocks edged lower on Tuesday after the European Commission cut eurozone growth forecasts but stopped short of stating that any of the 18 member countries face economic contraction next year.

The EC predicted the eurozone economy would expand 1.1% next year, down from its previous forecast of 1.7%, with hefty cuts in its prognosis for Germany and France, the region's two largest economies.

In London, the FTSE 100 was down 0.32% at 6,467.49 and in Frankfurt the DAX dropped 0.21% to 9,232,62. In Paris, the CAC 40 fell 0.51% to 4,172.44.

Watch the video below for a closer look at how European markets are doing in midday trading Tuesday:

In Frankfurt, German clothing company Hugo Boss  (BOSSY) sank more than 5% after it cut full-year forecasts because of a weak performance in Europe and "uncertainties in Asia." It said full-year Ebitda will rise by 5% to 7%, having previously flagged a "high single-digit" increase.

In Paris, cosmetics giant L'Oréal  (LRLCY) dropped almost 2% before paring losses after third-quarter sales growth missed forecasts. The company said the "mass market hit an air pocket" in Western Europe, causing its consumer products division to decline. The company said it expects fourth-quarter growth to speed up and for the full year it said it will slightly outperform the worldwide cosmetics market.

Also in Paris, tire maker Cie. Generale des Etablissements Michelin  (MGDDY) edged higher on news it will cancel just over a million shares, or 0.54% of the outstanding equity.

In the Netherlands, chemicals and nutrition company Royal DSM gained almost 3% after posting third-quarter results and hinting it may sell some chemicals businesses. The company is a target of hedge fund Third Point LLC, which wants it to break up.

Spirit Pub Co. edged higher after agreeing to a 774 million pounds ($1.2 billion) takeover by brewer and pubs operator Greene King, which saw off a rival bid from Ireland's C&C Group. Spirit shares held below the 115 pence value of the cash-and-stock Greene King bid to trade at 108 pence by mid-morning in London.

In Tokyo, stock indices had another good run after last week's stimuli from the Bank of Japan. The Nikkei 225 closed up 2.73% at 16,862.47.

SoftBank  (SFTBY) closed up 1.1% before it cut its profit forecast for the year to March by 10% because of losses at its majority owned Sprint (S)  wireless services unit in the U.S.

Car maker Honda (HMC)  closed up 1.6% and airbag maker Takata closed up 5.7% after the National Highway Traffic Safety Administration began a formal investigation into whether the companies failed to safety incidents related to Takata airbags.

But in Seoul, Hyundai fell 3.1% on news it and rival Kia Motors will pay about $350 million to settle U.S. Justice Department and Environmental Protection Agency charges that they exaggerated their vehicles' fuel economy to sell more cars. Kia was little changed.

In Hong Kong, the Hang Seng closed down 0.29% at 23,845.66. 

 

 

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