Disappointing earnings weigh on European shares

Source : REUTERS
Last Updated: Wed, Oct 19, 2016 13:08 hrs
Share Market

European shares fell in early deals on Wednesday after a slew of weak updates weighed on British firms Travis Perkins and Reckitt Benckiser , while Akzo Nobel's results were hit by a weak pound.

The pan-European STOXX 600 index fell 0.4 percent, following a 1.5 percent rise in the previous session.

Building materials supplier Travis Perkins dropped nearly 6 percent and was on track for its biggest daily loss since June after the firm warned on its 2016 profit, blaming a disappointing performance in its plumbing and heating business.

The company also said that it would close more than 30 branches.

Consumer goods maker Reckitt Benckiser also fell, down nearly 3 percent after reporting a bigger than expected slowdown in underlying third-quarter sales growth.

Price pressures and a drop in the value of sterling hit Dutch coatings and paints maker Akzo Nobel, which retreated 2.5 percent after reporting a slide in quarterly sales.

However, among the risers, Sweden's Intrum Justitia jumped more than 6 percent after a well-received set of results.

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