European stocks were mixed Monday as automakers weighed in Germany and corporate earnings hit both indices in London, while benchmarks elsewhere all managed to notch up gains.
The FTSE 100 was more than 1% lower heading toward the close Monday, quoted at 7,368, while the mid-market FTSE 250 was down 0.86% at 19,582 making them both Europe's worst performers for the session.
The CAC 40 in Paris bucked the trend in Western Europe for the session, with a gain of 0.40% to 5,140, while the DAX slid 0.10% to 12,228 in Frankfurt. The FTSE MIB in Milan and the IBEX in Madrid each notched a positive return, with gains of 0.5% or more.
Near-prime consumer credit firm, Provident Financial, was the biggest mover on the FTSE 100 Monday after posting a near 5% loss ahead of Tuesday's interim results. The shares are already down 30% in the last three months after a surprise profit warning hastened an already in-progress correction for the lender, which normally trades a premium to its consumer credit peers.
The lender blamed difficulties encountered with the reorganization of its consumer credit division for hitting the bottom line during the second quarter and its anticipated effect on the full-year results. Some analysts have suggested that there could be further downgrades to guidance during the rest of the year and that the stock no longer deserves the premium valuation that it continues to trade at.
"We think another profit warning for Home Credit is likely, since guidance remains too optimistic, in our view. The disruption to date validates our previously held concerns about rising impairments and customer attrition," said Portia Patel, an analyst at Liberum Capital, in July.