Brewing giant sends European shares lower
European shares fell for the first time this week on Friday, as a 10% slide in shares of brewing giant Anheuser-Busch InBev sent a shiver through investors worried about the outlook for growth and the prospect of months more wrangling over Brexit.
The pan-European STOXX 600 dipped 0.2%, but was still on track to end a busy week of corporate earnings higher after a handful of industry heavyweights topped low market expectations.
The food and beverage sector led losses on Friday, however, after Anheuser-Busch InBev came in below analysts’ forecasts for quarterly profit and cut its forecasts for improvement in its bottom line this year.
Shares of German telecoms operator 1&1 Drillisch and its parent company United Internet also tanked after the former’ s request to review prices under an agreement with rival Telefonica Deutschland was rejected.
On the bright side, France’s CAC 40 outperformed as Gucci owner Kering jumped 8%, while Italian jacket maker Moncler rose 7%. The companies joined other luxury labels in easing fears of a major third quarter sales hit from the protests in Hong Kong. Limiting those gains was a 20% fall in shares of entertainment company Ubisoft, which lost roughly a quarter of its value after cutting its 2020 earnings guidance.
Among banks, Spain’s Banco Sabadell and Britain’s Barclays both rose after reporting betterthan-expected third-quarter earnings.
London’s FTSE 100, Dublin stocks and the pound all edged lower, as UK Prime Minister Boris Johnson conceded for the first time on Thursday that he could not meet his Oct. 31 Brexit deadline.
British housebuilders, which are considered among sectors most exposed to the domestic economy, dipped 0.3%in their fifth straight session of losses.
Investors now await the European Union’s response to a British request to delay Brexit again and a summit in Chile where U.S. President Donald Trump hopes to finalise a partial trade deal with his Chinese counterpart Xi Jinping.
This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: infoassetmanagement@bov.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.