European shares edged lower on
Wednesday after a slew of weak financial updates weighed on
British firms Travis Perkins and Reckitt Benckiser
, and on Dutch paint maker Akzo Nobel whose
results were hit by a weak pound.
The pan-European STOXX 600 index fell 0.2 percent,
following a 1.5 percent rise in the previous session.
Building materials supplier Travis Perkins dropped 5.7
percent and was on track for its biggest daily loss since July
after the firm warned its 2016 profit would be hit by a
disappointing performance in its plumbing and heating business.
The company also said that it would close more than 30
"It seems to be the suppliers that are really getting hit,"
Ken Odeluga, market analyst at City Index, said.
"On the secondary level of the home market, where you've got
the materials providers, they may be seeing the first negative
impact from the slide of the pound and the rise in the input and
Consumer goods maker Reckitt Benckiser also fell, down 3.2
percent after reporting a bigger than expected slowdown in
underlying third-quarter sales growth.
"The factors behind the subdued performance are as
previously guided, so the South Korean litigation/de-stocking, a
weak Russian performance and Hygiene growth hit the failure of a
Scholl/Amope NPD initiative to land," Darren Shirley, analyst at
Shore Capital Markets, said in a note.
Price pressures and a drop in the value of sterling hit
Dutch coatings and paints maker Akzo Nobel, which retreated 2.7
percent after reporting a slide in quarterly sales.
Broker downgrades also weighed, with Sweden's Getinge
down 2.8 percent after JPMorgan cut its target price
on the stock.
However, the top riser on the STOXX 600 index was Edenred
. The French voucher and prepaid card provider gained
nearly 7 percent after unveiling a three-year strategic plan.
It was joined by Swedish debt collector Intrum Justitia
and French hotel operator AccorHotels, which
both rose on the back of well-received results.