European stocks fell on Friday as disappointing earnings from several companies, including Sanofi, NatWest Group Plc and Moncler SpA, weighed on the region. The rout this month has reduced gains on the main benchmark to around 1% for the year.
The Stoxx 600 index was down 0.8% by the close in London, with the healthcare sector leading declines. Drugmaker Sanofi plunged 19% as a surprise forecast for lower profit next year overshadowed optimism about a plan to spin off the consumer health division.
Among other single stocks, UK lender NatWest Group Plc plummeted after it cut its margin guidance, while Italy’s Moncler became the latest luxury company this season to disappoint, as analysts noted weaker trends into the latter part of the year. Drinks company Remy Cointreau SA also fell after cutting its annual sales guidnce.
There were a few bright spots in earnings, including Ubisoft Entertainment SA, which rose after the video-game maker reported a “major bookings beat” for the second quarter.
“Pessimism still prevails for EU stock investors, mainly weighed down by a disappointing earnings season and continuing geopolitical concerns,” said Pierre Veyret, technical analyst at ActivTrades. “Even if share prices have become much more attractive in the last part of 2023, the uncertain environment still makes it hard for investors to find good reasons to buy.”
In the US, the tech-heavy Nasdaq 100 outperformed after solid earnings from Amazon.com Inc. and Intel Corp.
For more on equity markets:
- Things Look Bad, Yet a Rebound Isn’t Impossible: Taking Stock
- M&A Watch Europe: TotalEnergies, Covestro, Sanofi, UniCredit
- Worldline Faces Repayment on Busted Convertible Bonds: ECM Watch
- US Stock Futures Rise; Dexcom Inc, NerdWallet, Coursera Gain
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--With assistance from Michael Msika.
