Europe Stocks Fall for 2nd Day as Daimler Leads Carmakers Lower

European stocks slid further away from a three-month high, trimming a second weekly advance, led by declines in carmakers and miners.

Daimler AG lost 5.2 percent after its quarterly operating profit declined. PSA Peugeot Citroen fell 3.8 percent after the group’s premises in France were searched by government fraud investigators as part of a probe into vehicle emissions. A gauge of commodity producers dropped for a second day, with ArcelorMittal and Rio Tinto Group down 2.8 percent or more.

The Stoxx Europe 600 Index lost 0.4 percent at 8:14 a.m. in London. Traders sent the benchmark 0.3 percent lower yesterday as they remained unconvinced by the European Central Bank’s stimulus program even after Draghi urged critics to give it time to work.

Still, advances in commodity and energy producers have led a rally in European equities in the past two months. The Stoxx 600 surged as much as 15 percent from a February low to close at their highest level since Jan. 6 on Wednesday. It’s poised for a weekly advance of 1.5 percent.

The gains have come even as analysts have slashed their profit estimates for the region’s companies. They now predict an earnings decline in 2016 for Stoxx 600 firms, reversing calls for growth at the start of the year.

Among shares moving on financial results, Kering SA slid 4 percent after the Gucci owner reported first-quarter revenue that trailed analysts’ estimates. Volvo AB rose 4.3 percent on better-than-estimated earnings.

Source: Bloomberg

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Japan Stocks Rise Third Day, Led by Carmakers, Amid Light Volume

Japanese stocks rose for a third day amid reduced volume as investors digested the Group of 20’s statement on the global outlook.

The Topix index rose 0.6 percent to 1,318.98 at the trading break in Tokyo, with more than twice as many shares rising as falling. Volume on the measure was 16 percent below the 30-day intraday average. The Nikkei 225 Stock Average climbed 0.4 percent to 16,255.23. The yen traded at 113.36 per dollar, after dropping 0.9 percent on Friday.

Carmakers led gains among the 33 Topix industry groups. Nissan Motor Co. surged 7.6 percent, headed for its biggest gains since 2009, after announcing plans to buyback 400 billion yen ($ 3.52 billion) worth of shares. Nintendo Co. fell as much as 5.4 percent before reversing losses to rise 0.4 percent after halving its outlook for profit this fiscal year. Sapporo Holdings Ltd. slid 4.4 percent after JPMorgan Chase & Co. downgraded the brewer.

The Topix pared gains of as much as 1.7 percent in the morning session after Chinese shares tumbled. The Shanghai Composite index slumped as much as 4.4 percent, the lowest level since November 2014, following the conclusion of the Group of 20 meeting in Shanghai.

Source: Bloomberg

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