European stocks negative on disappointing results
On Friday European stocks fell for a fifth day as companies reported disappointing results while a bond rout abated and metals rallied.
The Stoxx Europe 600 Index headed for its longest losing streak in six weeks after Anheuser-Busch InBev NV posted a surprise drop in profit and Novo Nordisk A/S, the world’s biggest maker of insulin, cut its longterm growth target. German bunds were little changed following a selloff this week spurred by speculation the European Central Bank along with other global policy makers will rein in stimulus. A gauge of dollar strength was near a sevenmonth high before the U.S. reports gross domestic product. Aluminum rose to a 15-month high after a rally in iron ore prices in China.
The Stoxx 600 fell 0.5 percent at 10:51 a.m. in London. An index of executive and consumer sentiment in the region rose to 106.3 from 104.9 in September, the European Commission in Brussels said Friday. That’s the strongest reading since December and beats the median estimate in a Bloomberg survey, which was for an unchanged reading.
The data offer a glimpse of the euro area’s economic performance after the U.K.’s decision to leave the European Union increased downside risks to the fragile and uneven recovery. Diverging growth rates are keeping pressure on the European Central Bank to maintain unprecedented stimulus to strengthen the economy and bring inflation back to its goal of just under 2 percent.
Asian stocks headed for a weekly drop as Chinese shares retreated and investors weighed mixed earnings reports before central bank meetings and the U.S. election. Japanese equities rallied after the yen fell. The MSCI Asia Pacific Index lost 0.7 percent to 138.77 as of 4:02 p.m. in Hong Kong and was little changed on Friday.