Europe Stocks Are Little Changed on World Bank Global Cut
European stocks were little changed near a six-year high as the World Bank cut its global growth forecast, and investors awaited a report on U.K. unemployment. U.S. stock-index futures were also little changed, while Asian shares rose.
Airbus NV declined 4 percent after saying Emirates canceled its entire order for A350 wide-body aircraft. Vallourec SA slid 11 percent after saying 2014 earnings may drop 10 percent from a year earlier. Inditex SA gained 1.3 percent after posting first-quarter profit that beat analysts’ estimates, and saying it plans a share split.
The Stoxx Europe 600 Index fell less than 0.1 percent to 349.61 at 8:05 a.m. in London. The equity benchmark rose for a fifth day yesterday amid optimism that stimulus measures announced by the European Central Bank last week to increase inflation will send equities higher. Standard & Poor’s 500 Index futures dropped 0.1 percent today, while the MSCI Asia Pacific Index gained 0.3 percent.
Nine Stoxx 600 companies including Vodafone Group Plc and Cie. de Saint-Gobain are trading without the right to dividends today, shaving 0.2 point off the index.
The World Bank forecast in a report 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 at 9:30 a.m. may show the unemployment rate fell to 6.7 percent in the three months through April, from 6.8 percent in the quarter through March, according to economists surveyed by Bloomberg News. The rate is measured according to International Labour Organization methods.
Plane Plan
Airbus fell 4 percent to 51.72 euros after saying that Emirates dropped its planned purchase of 50 A350-900 planes and 20 of the larger -1000 variant. Emirates, the biggest buyer of the A380 aircraft, made the decision after reviewing its fleet requirement, Airbus said. Emirates placed the order in 2007 and the first delivery was scheduled in 2019.
Rolls-Royce Holdings Plc slipped 2.1 percent to 1,053 pence after saying Emirates’ cancellation reduces its order book by about 2.6 billion pounds ($4.4 billion).
Vallourec tumbled 11 percent to 34.94 euros. The French producer of steel pipes for the oil and gas industry said 2014 earnings before interest, taxes, depreciation and amortization will be about 10 percent lower than the previous year because of a reduction in orders from Petroleo Brasileiro SA, which is eliminating most of its tube inventories.
Nutreco Falls
Nutreco NV (NUO) dropped 1.9 percent to 31.46 euros after saying it has halted a process to sell its Iberian compound-feed and meat assets. The company said it didn’t get an offer that matched its expectations, following discussions with several potential buyers. The Dutch maker of animal-nutrition products and fish feed undertook a four-month sale process to find a buyer for the cash generative business.
Inditex advanced 1.3 percent to 111.70 euros. The world’s largest apparel retailer posted first-quarter net income of 406 million euros ($550 million), exceeding the average analyst forecast of 391.2 million euros. The owner of Massimo Dutti also proposed a five-for-one stock split for shareholders.
Source: bloomberg
