By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- European stock markets struggled for
direction on Thursday, after earnings from some of the region's
heavyweights added pressure, offsetting hopes for a rate cut at the
European Central Bank's policy-setting meeting next week.
The Stoxx Europe 600 index fell 0.1% to 294.31, after putting in
its largest four-day gain since July 2012 on Wednesday.
Shares of British American Tobacco PLC (BTI) added 2.2%, after
the firm said first-quarter revenue went up 5% at constant exchange
rates. Additionally, the board said it's confident of another year
of earnings growth in line with long-term strategic goals.
On a more downbeat note, shares of Banco Santander SA (SAN)
dropped 3%, after the bank said first-quarter net profit dropped
26%, hit by tough economic environments in key markets, especially
Spain and the U.K.
For the broader European markets, investors took stock of recent
disappointing data, stoking speculation of a 25 basis point rate
cut at the ECB's meeting next week. On Wednesday, data showed
business confidence slipped in Germany in April, while U.S.
durable-goods orders posted the biggest drop in March since last
summer.
"Economists are playing the card which implies that poor data is
not always a bad thing for the markets. Many economists are
pointing out that a short period of bad data may just encourage
policy officials to maintain or even enhance current stimulus
measures," said Shavaz Dhalla, financial trader at Spreadex, in a
note.
"However, investors need to remain on guard to such an argument,
as accepting poor data because it can lead to more stimulus
measures does not solve the problem in the long-term," he said.
Among country-specific indexes, the U.K.'s FTSE 100 index traded
0.2% higher at 6.443.79.
Shares of Vodafone Group PLC (VOD) added 1%, after reports said
Verizon Communications Inc. (VZ) plans to bid for joint venture
Verizon Wireless.
Unilever PLC (UL) slid 1.9%. The consumer-goods firm reported
first-quarter sales growth below expectations, as slowing North
America growth and a weak start to ice cream purchases in Europe
added pressure.
In France, the CAC 40 index lost 0.2% to 3,834.63, while
Germany's DAX 30 index was slightly higher at 7,760.44.
Spain's IBEX 35 index lost 0.8% to 8,323.90, after data showed
unemployment jumped to a new all-time high above 27%.
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