EUROPE MARKETS: European Shares Face 2nd Straight Loss As Banks Fall
By Carla Mozee, MarketWatch
Gemalto and Ubisoft are top gainers
European stocks declined Wednesday, potentially on course for a second straight loss, as Credit Agricole SA was a decliner among bank shares.
What markets are doing: The Stoxx Europe 600 lost 0.1% at 394.32, as financial, telecom and industrial shares lost ground. But health care and basic material shares led sectors that were rising. On Tuesday, the benchmark fell 0.5% , pulling back further from its 52-week closing high made last week.
In Wednesday's trade, Germany's DAX 30 index was up 0.1% at 13,388.07, while France's CAC 40 shed 0.1% to 5,477.84.
The U.K.'s FTSE 100 was up 0.1% at 7,516.789. The index on Monday marked a record close. Spain's IBEX 35 was down 0.2% at 10,209.60.
The euro traded at $1.1597, slightly higher than $1.1587 late Tuesday in New York.
What is moving markets: A new wave of corporate earnings reports rolled in Wednesday. French lender Credit Agricole's decline in profit was narrower than anticipated, but there was a shortfall in revenue. But among advancing shares, Ubisoft Entertainment SA hit a record high after the French video game maker's sales exceeded expectations.
Meanwhile, the Stoxx Europe 600 Bank Index fell 0.6%. Analysts have been noting that declining bond yields in the eurozone in the wake of the ECB's recent monetary policy decision has been a source of pressure for lenders. Bond yields fall when prices rise.
Stock movers: Credit Agricole shares (>> Crédit Agricole) sank 4.6% as the lender's third-quarter revenue rose 22% to EUR4.58 billion, but that was below a FactSet consensus estimate of EUR4.74 billion . Quarterly profit slid 43% to EUR1.07 billion ($1.24 billion), which was above expectations of EUR993 million.
Gemalto NV (>> Gemalto) climbed 5.3% following a ratings upgrade to buy from neutral at UBS, which said the market is underestimating the digital security company's growth potential and scope of cost savings.
Ubisoft Entertainment SA (>> Ubisoft Entertainment) rallied 8.5% to a record high of EUR70.90 a share, according to FactSet data, as the company behind "Assassin's Creed" and other video games said second-quarter sales of EUR264.2 million outstripped its target of EUR190.0 million.
Gemalto and Ubisoft were the top gainers on the Stoxx 600.
Italian lender Banco BPM SA (>> Banco BPM) and Vienna-based building materials supplier Wienerberger AG led decliners index as shares in each fell by 6.3%.