EUROPE MARKETS: European Stocks End Lower For 2nd Straight Day As Banks Fall

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11/08/2017 | 06:52 pm

By Carla Mozee and Victor Reklaitis, MarketWatch

Ubisoft is top gainer; Gemalto also jumps

European stocks declined Wednesday, enduring a second straight loss, as Credit Agricole SA was a decliner among bank shares.

What markets are doing: The Stoxx Europe 600 edged down by less than 0.1% to end at 394.45, pulling back further from its 52-week closing high made last week. On Tuesday, the benchmark fell 0.5% .

In Wednesday's trade, Germany's DAX 30 index was up less than 0.1% to end at 13,382.42, while France's CAC 40 shed 0.2% to 5,471.43.

The U.K.'s FTSE 100 closed up 0.2% at 7,529.72, creeping back toward Monday's record close. Spain's IBEX 35 was down less than 0.1% at 10,228.70.

The euro traded at $1.1591, slightly higher than $1.1587 late Tuesday in New York.

What is moving markets: A new wave of corporate earnings reports rolled in Wednesday. French lender Crédit Agricole's decline in profit was narrower than anticipated, but there was a shortfall in revenue. But among advancing shares, Ubisoft Entertainment SA hit a record high after the French videogame maker's sales exceeded expectations.

Meanwhile, the Stoxx Europe 600 Bank Index fell 0.1%. Analysts have been noting that declining bond yields in the eurozone in the wake of the ECB's recent monetary policy decision has been a source of pressure for lenders. Bond yields fall when prices rise.

Stock movers: Crédit Agricole shares (>> Crédit Agricole) sank 3.2% as the lender's third-quarter revenue rose 22% to EUR4.58 billion, but that was below a FactSet consensus estimate of EUR4.74 billion . Quarterly profit slid 43% to EUR1.07 billion ($1.24 billion), which was above expectations of EUR993 million.

Ubisoft Entertainment SA (>> Ubisoft Entertainment) rallied 9.3% to a record high, according to FactSet data, as the company behind "Assassin's Creed" and other videogames said second-quarter sales of EUR264.2 million outstripped its target of EUR190.0 million. Ubisoft was the top gainer in the Stoxx 600.

Italian lender Banco BPM SA (>> Banco BPM) led decliners in the index, as shares in fell 7.5%.

Gemalto NV (>> Gemalto) climbed 5.2% following a ratings upgrade to buy from neutral at UBS, which said the market is underestimating the digital security company's growth potential and scope of cost savings.

Stocks mentioned in the article : Crédit Agricole, Ubisoft Entertainment, Gemalto, Banco BPM
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