European Stocks Decline as Investors Weigh Earnings
European stocks declined as investors weighed earnings reports and international tensions after the downing of a passenger jet in Ukraine and Israel’s offensive in Gaza. U.S. index futures were little changed, while Asian shares climbed.
Aveva Group Plc and Wm Morrison Supermarkets Plc led losses, dropping at least 2 percent each. Julius Baer (BAER) Group Ltd. jumped the most since July 2013 after saying first-half profit rose 56 percent. Tesco Plc gained 2 percent after saying Unilever’s Dave Lewis will replace Philip Clarke as chief executive officer.
The Stoxx Europe 600 Index fell 0.3 percent to 338.61 at 8:25 a.m. in London. The gauge pared losses in the final hour of trading on July 18 and futures on the Euro Stoxx 50 rose later that day as concerns eased over crises in Ukraine and the Middle East. Standard & Poor’s 500 Index futures slipped 0.2 percent today, while the MSCI Asia Pacific Index added 0.2 percent.
Russian President Vladimir Putin is facing intensified international pressure after pro-Russian rebels downed Malaysia Airlines flight MH17 on July 17, killing 298 people on board. Circumstantial evidence suggests the missile had been provided by Russia, U.S. Secretary of State John Kerry said.
Israel’s ground offensive in Gaza entered its bloodiest phase yet as militants killed 13 soldiers and fighting in one neighborhood claimed the lives of dozens of Palestinians. The conflict is escalating after two weeks of fighting, which began with rockets launched from Gaza and Israeli war planes pummeling the coastal territory.
Julius Baer rose 6 percent to 38.73 Swiss francs. The Swiss wealth manager founded in 1890 said first-half net income climbed to 178.3 million francs from 114 million francs a year earlier. Assets under management rose by 20 billion francs to 274 billion francs.
Tesco advanced 2 percent to 290.6 pence. The company said in a statement today that Lewis will take over as CEO on Oct. 1 and Clarke will stay on to support a transition until January. The retailer also said sales and trading profit in the first half of the year are below expectations.
To contact the reporter on this story: Jonathan Morgan in Frankfurt at jmorgan157@bloomberg.net
To contact the editors responsible for this story: Cecile Vannucci at cvannucci1@bloomberg.net Srinivasan Sivabalan
Source: Bloomberg
