European stocks fell from a six-year high as companies including Deutsche Lufthansa AG and Vallourec SA cut their profit forecasts.
The Stoxx Europe 600 Index fell 0.6% to 347.74 at the close of trading, its biggest loss since May 15.
Analysts have cut their earnings estimates for Stoxx 600 companies to a gain of 9.1% this year, compared with an increase of about 14% predicted at the beginning of the year.
Nine Stoxx 600 companies including Vodafone Group Plc and Cie. de Saint-Gobain trade without the right to dividends today, shaving 0.2 point off the index.
The World Bank forecast that the global economy will expand 2.8 percent this year, down from a January projection of 3.2 percent. The Washington-based lender predicted slower growth for the U.S., China, Russia, India and Brazil. It left estimates for world growth in 2015 unchanged at 3.4 percent.
In the U.K., a report from the Office for National Statistics showed the unemployment rate fell to the lowest in more than five years. The jobless rate as measured by International Labour Organization methods dropped to 6.6 percent in the three months to April from 6.8 percent in the first quarter. The median estimate in a survey was 6.7 percent.
National benchmark indexes declined in all 18 western European markets today:
A gauge of travel-and-leisure stocks posted the second-worst performance of 19 industry groups in the Stoxx 600. IAG SA, the owner of British Airways, dropped 3.1% and Air France-KLM Group fell 7%.
Lufthansa slid the most since September 2001 after lowering operating-profit estimates for this year and next.
Vallourec SA plunged the most in two years after predicting earnings will drop 10% in 2014. Airbus NV lost 3.1% after saying Emirates canceled its order for A350 wide-bodied aircraft.
Inditex SA rose 1.1% after posting first-quarter profit that beat analyst estimates, and saying it plans a share split.
Rolls-Royce Holdings Plc slipped 5.5%. The maker of civil-aviation engines said Emirates’ cancellation reduces its order book by about 2.6 billion pounds.
Комментариев нет:
Отправить комментарий