Europe Stocks Slide on Growth, Earnings Concern as Allianz Drops

European shares declined, trimming a weekly gain, as investors assessed corporate earnings amid renewed concerns about global growth.

Allianz SE slid 3.5 percent, dragging a gauge of insurance companies to one of the worst performances of the 19 industry groups on the Stoxx Europe 600 Index, after reporting fourth-quarter profit that missed analyst estimates. Lenders, the most battered among European peers this year, erased an early rebound as Italian banks slipped.

The Stoxx 600 dropped 0.5 percent to 327.28 at 8:19 a.m. in London. The equity benchmark is heading for a 4.7 percent gain this week, taking its advance since a 29-month low hit on Feb. 11 to 7.8 percent. The measure is still down 11 percent this year amid concerns ranging from global growth and the deepening oil slump, to the creditworthiness of lenders and dissipating faith in central-bank support.

European stocks late Thursday gave up almost all the gains they had built up earlier in the session, as investors sold shares most closely linked with economic growth, with a gauge of stock volatility snapping a four-day declining streak. Capital Group Cos., the money manager with $ 1.4 trillion in assets, expects volatility to remain elevated amid a slowing global economy and uncertainty about central bank policies.

Among other stocks moving on corporate news today, Ingenico Group SA tumbled 13 percent after JPMorgan Chase & Co. downgraded the French payments-processing company, saying its 2016 earnings-margin forecast is below the broker’s estimates. Standard Life Plc rose 3.3 percent after reporting better-than-expected full-year profit and disclosing a Solvency II ratio of 162 percent.

Source : Bloomberg

MARKET