European stocks headed lower Thursday, led by weakness in the
energy sector, as investors focused on a mixed bag of corporate
earnings.
The Stoxx Europe 600 was down 0.3% in early trade, following a
1.3% gain on Wednesday.
Oil and gas companies on the Stoxx Europe 600 fell 1.3%, led by
drops in BP PLC shares of 3.0% and Tullow Oil PLC of 2.2%,
following recent declines in oil prices.
The biggest loser was Danish biotechnology Novozymes A/S, which
was down 9.2% after cutting its sales growth forecast.
Weak results also weighed on Deutsche Post AG and Zurich
Insurance Group, which were down 3.9% and 3.5%, respectively.
German retailer Metro AG climbed after posting a net profit for
the second quarter.
Germany's DAX index was down 0.1%, France's CAC 40 index was
down 0.2% and the U.K. FTSE 100 index was 0.4% lower.
In the U.K., investors were looking ahead to the release of Bank
of England's inflation report, an interest rate decision, minutes
of the policy meeting and comments from Governor Mark Carney.
Barclays strategist Dennis Tan said he expected at least one
member of the BOE's rate-setting committee to vote for an
interest-rate increase.
Mr. Tan said the British pound should continue to rise in value
against other European currencies. The euro was down 0.2% against
the pound at £ 0.6977, and is down more than 10% against sterling
this year.
More broadly, investors are waiting for Friday's U.S. jobs
report for July for more guidance on the timing of the first
increase in interest rates in nearly a decade. The Federal Reserve
considers employment and inflation data as it makes decisions on
monetary policy.
Asian stocks fell overnight led by bourses in China as investors
continue to assess the level of regulators' commitment to support
mainland stocks. The Shanghai Composite Index was down 0.9%
In Australia, the S&P ASX 200 was down 1.1% after the
country's biggest banks announced plans to raise billions of
dollars to meet regulatory demands for higher capital holdings.
Brent crude was slightly lower at $49.55 per barrel. Gold was
flat at $1,085.7 per troy ounce.
Write to Christopher Whittall at
christopher.whittall@wsj.com
Access Investor Kit for "Tullow Oil Plc"
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=GB0001500809
Access Investor Kit for "BP plc"
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=GB0007980591
Access Investor Kit for "Barclays Plc"
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=GB0031348658
Access Investor Kit for "BP plc"
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US0556221044
Access Investor Kit for "Barclays Plc"
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US06738E2046
Access Investor Kit for "Tullow Oil Plc"
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US8994152028
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
