EUROPE MARKETS: Apple's Crushing Results Weigh On Europe

By Sara Sjolin, MarketWatch

LONDON (MarketWatch) -- European stock markets wavered on Thursday, as disappointing earnings from Apple Inc. dampened risk sentiment globally, while factory data from China and the euro zone helped curb losses.

The Stoxx Europe 600 index dropped 0.1% to 288.09, partly erasing a 0.2% gain from Wednesday.

Shares of Logitech International SA sank 7.5%, after the computer-equipment firm said it swung to a net loss of $195 million in the third fiscal quarter compared with a profit of $55 million the year-ago period.

Shares of Nokia Corp. (NOK) fell 5% after the Finnish handset maker said it swung to a profit of 5 euro cents a share in the fourth quarter, beating consensus earnings of 2 euro cents a share. Sales fell 20% to 8.041 billion euros, falling short of estimates. The company also scrapped its 2012 dividends for 2012.

Shares of chip maker ARM Holdings PLC (ARMHY) gave up 0.5%, after Apple (AAPL) late on Wednesday posted first-quarter sales below expectations and gave a disappointing forecast.

The weak Apple earnings also weighed on the broader risk sentiment globally, sending both Asian bourses mostly lower and beating most U.S. stock futures.

U.S. markets had closed in positive territory on Wednesday, after the Republican-controlled House of Representatives approved a suspension of the debt ceiling until May 19.

Closer to home, U.K. mining firms showed upbeat moves, after HSBC's so-called "flash" manufacturing Purchasing Managers' Index for January climbed to a 24-month high of 51.9, indicating business conditions for Chinese manufacturers improved further.

Shares of Anglo American PLC gained 0.5%, while heavyweight Rio Tinto PLC (RIO) was up 1%. That helped the FTSE 100 index rise 0.4% to 6,219.05.

The broader stock markets further trimmed losses, after the Markit composite purchasing-managers' index for the euro zone signaled the economic downturn in the region eased in January. The index rose to 48.2 from a December reading of 47.2, beating expectations of a 47.6 print. A reading below 50 signals contraction.

France's CAC 40 index was flat at 3,728.35, after trading as low as 3,711.55 earlier in the session.

Shares of LVMH Moët Hennessy Louis Vuitton gained 0.5% to 139 euros. J.P. Morgan Cazenove raised the luxury-goods maker's price target to EUR142 from EUR132 previously.

Outside the main index in Paris, shares of CGG Veritas slumped 1.7%, after Goldman Sachs cut the oil-services firm to sell from neutral.

Germany's DAX 30 index was flat at 7,707.39, up from an intraday low of 7,661.96.

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