Subpar Earnings Reports Send European Stocks Lower -- 5th Update

By Tommy Stubbington and Josie Cox 

Stocks in Europe stumbled Thursday on a set of disappointing corporate earnings.

The Stoxx Europe 600 ended the session 0.5% lower. The pan-European index had opened the day higher after an early morning vote in Greece's Parliament approved a second batch of economic overhauls demanded by creditors, but that optimism proved short-lived.

Daily Mail & General Trust PLC led losses. Shares in the U.K.-based media company tumbled almost 8.5% after it warned that its full-year results would be at the lower end of expectations.

Shares in Aberdeen Asset Management PLC also took a beating, falling 7.6% after the investment firm reported a 7% fall in quarterly assets under management. Paul McGinnis, an analyst at brokerage Shore Capital, wrote in a note to clients that the outflows were worrying and that he would review his current hold recommendation on the stock.

Elsewhere, recent weakness in commodity prices dragged down energy and mining shares, with the subindex of oil and gas stocks falling 1.4%. Basic resources ended the day 2.1% lower.

Brent crude was trading broadly flat at the European stock market close, at around $56.14 per barrel. Since the start of the month, however, it is down close to 12%.

Dominick Chirichella, an analyst at research consultancy Energy Management Institute, wrote in a note to clients that the global oil market has yet to stabilize and rebalance and it doesn't look like it will do so any time soon.

Technology stocks pared the previous session's losses, which were triggered by some disappointing earnings from Apple Inc.

Germany's DAX index ended the day 0.1% lower, France's CAC-40 rose 0.1% and London's FTSE 100 fell 0.2%.

In currency markets, the euro was 0.5% higher against the dollar at $1.0978. Analysts said there was no specific catalyst for the move, which reverses part of the common currency's decline last week.

The British pound gave up its early gains against the dollar to fall 0.5% to $1.5527 following disappointing U.K. retail sales data.

Write to Tommy Stubbington at [e-mail]

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