European shares fall as BASF profit warning hits German stocks

  • Reuters
  • Stock Market News
European shares fall as BASF profit warning hits German stocks
Credit: © Reuters.

July 9 (Reuters) - European shares opened lower on Tuesday in what could be their third straight day of losses as German shares fell sharply due to a profit warning from chemicals giant BASF.

Amid dimming hopes of a sharp cut in U.S. interest rates this month that has been weighing on riskier assets since late last week, the pan-European STOXX 600 index .STOXX fell 0.4% by 0714 GMT, in line with Asian peers and Wall Street overnight. MKTS/GLOB

German shares .GDAXI tumbled 0.8%.

In the latest evidence of the U.S.-China trade war squeezing businesses, German chemicals firm BASF BASFn.DE slumped 5.3% on warning that profit would fall below forecasts for the second quarter and the full year. hit fellow chemicals company Bayer BAYGn.DE , which fell 1%, taking Europe's chemicals index .SX4P down 1.7%.

Nordic lender Danske Bank DANSKE.CO , which has been struggling to restore trust among investors after disclosing a major money laundering scandal at one of its branches, cut its 2019 earnings forecast for the second time, sending its shares 2.5% lower.

Deutsche Bank DBKGn.DE fell 1.6%, adding to Monday's 5.4% slide as it began to slash 18,000 jobs in a 7.4 billion euro ($8.3 billion) "reinvention" that will lead to yet another annual loss.

Add Chart to Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100
Please try another search