EUROPE MARKETS: European Stocks Slide As GDP Data, Earnings Stream In

By Carla Mozee, MarketWatch

Euro pushes above $1.14

European stocks suffered their worst session in two months Friday, as investors tackled a raft of economic data and a fresh batch of corporate results as the week and month drew to a close.

The Stoxx Europe 600 tumbled 2.1% to 341.51, the lowest close since April 14, according to FactSet. All sectors were in the red.

National indexes printed sharp losses, with Germany's DAX 30 sliding 2.7% to 10,038.97, and France's CAC 40 falling 2.8% to 4,428.96, their worst losses since mid-February.

"Markets are still coming to terms with the central bank announcements of the last couple of days, and the legacy of these decisions continues to impact through the markets, with U.S. dollar weakness continuing," said Richard Perry, market analyst at Hantec Markets, in a note.

The Bank of Japan surprised markets Thursday (http://www.marketwatch.com/story/out-of-ammunition-analysts-react-to-bojs-surprise-non-move-2016-04-28) by not issuing a new round of stimulus for the world's third-largest economy. That sent the yen surging against the dollar (http://www.marketwatch.com/story/yen-extends-surge-hitting-18-month-high-against-dollar-2016-04-29).

The greenback continued to lose ground against major rivals Friday, with the euro leaping nearly 1% to $1.1447. A stronger euro tends to weigh on European exporters as it makes their products more expensive for holders of other currencies to purchase.

Data: Stocks remained lower after data showed eurozone gross domestic product grew 0.6% in the first quarter (http://www.marketwatch.com/story/eurozone-gdp-rises-as-recovery-gathers-pace-2016-04-29), according to a preliminary reading from Eurostat. That was stronger than an expected 0.4% rate.

But, separately, inflation in the currency bloc fell to negative 0.2% in April, missing expectations for a flat reading. The data highlight the challenge of stubbornly low inflation the European Central Bank has been battling against.

For the week, Stoxx Europe 600 fell 2%, breaking a two-week run of wins. The index for the month, however, ended up by 1.2%, marking a second straight monthly gain.

Indexes: Italy's FTSE MIB slid 2% to 18,600.56, while Spain's IBEX 35 was dragged down 2.6% to 9,025.70.

In London, the FTSE 100 fell 1.3% to 6,241.89 (http://www.marketwatch.com/story/ftse-100-slides-but-hangs-onto-monthly-gains-2016-04-29).

Movers: Restaurant Group PLC (RTN.LN) shares tumbled 27% after the restaurant chain operator issued a 2016 profit warning (http://www.marketwatch.com/story/restaurant-group-warns-on-2016-profit-cfo-resigns-2016-04-29-348593) and said its chief financial officer had resigned.

Sanofi SA (SAN.FR) was yanked 5.4% lower as cancer-treatment company Medivation Inc. rejected the French drugmaker's $9.3 billion takeover bid (http://www.marketwatch.com/story/medivation-rejects-sanofis-93-billion-bid-2016-04-29-11485019).

Citi analysts in a note said they "believe it is likely that [AstraZeneca] is actively exploring the acquisition" of Medivation. Such a purchase "could provide AZN with the potential for near immediate core earnings accretion," among other benefits, said Citi.

Telefónica SA (TEF) shares fell 4.3% after the Spanish telecom company said first-quarter net profit fell by more than half (http://www.marketwatch.com/story/telefonica-profit-tumbles-on-currency-woes-2016-04-29). Meanwhile, Telefónica executives have said it's possible European Union regulators will halt the sale of its British unit O2 (http://www.marketwatch.com/story/telefonica-prepared-for-regulators-to-halt-o2-sale-2016-04-29) to rival CK Hutchison Holdings Ltd. (0001.HK) .

International Consolidated Airlines Group SA (IAG.LN) stumbled 4.7% after the parent of British Airways cut its growth plans (http://www.marketwatch.com/story/iag-cuts-growth-plans-after-brussels-attacks-2016-04-29) in the wake of the Brussels terror attacks in March.

Credit Suisse AG (CSGN.EB) (CSGN.EB) fell 4.1% as the embattled Swiss banking group faced shareholders Friday. (http://www.marketwatch.com/story/credit-suisse-engulfed-in-battle-over-nearly-1-billion-in-losses-2016-04-29)

On the upside, shares of Vestas Wind Systems A/S (VWS.KO) gained 4.5% after the Danish wind-turbine maker's first-quarter profit fell but beat analyst expectations (http://www.marketwatch.com/story/vestas-net-profit-falls-38-on-weaker-deliveries-2016-04-29).

More data: Among other figures released Friday, French consumer prices unexpectedly rose to 0.2% in March (http://www.marketwatch.com/story/french-consumer-spending-rises-unexpectedly-2016-04-29). France's gross domestic product grew (http://www.marketwatch.com/story/french-gdp-beats-forecasts-spain-recovery-steady-2016-04-29) 0.5% in the first quarter, beating expectations for a 0.4% reading.

German retail sales unexpectedly fell 1.1% in March. (http://www.marketwatch.com/story/german-retail-sales-surprise-with-11-fall-2016-04-29)

(END) Dow Jones Newswires

April 29, 2016 12:17 ET (16:17 GMT)

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