Sliding car stocks drag Europe down as investors hit the brakes

  • Reuters
  • Stock Market News
Sliding car stocks drag Europe down as investors hit the brakes
Credit: © Reuters.

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LONDON, March 6 (Reuters) - European shares stalled on Wednesday as weak results from the troubled autos sector dragged the market down and investors' confidence in a rally that has sent stocks shooting up this year showed signs of fraying.

Exuberance in Chinese shares over hopes for fresh stimulus failed to spill over into European trading where the STOXX 600 .STOXX hovered near five-month highs, dipping 0.1 percent.

Auto stocks fell after German bearings maker Schaeffler SHA_p.DE warned of an "extremely challenging" business environment in 2019 and said it would restructure, sending its shares down 10.8 percent. sector index .SXAP fell 1.3 percent as German carmakers Daimler DAIGn.DE , BMW BMWG.DE , and Volkswagen VOWG_p.DE tumbled, dragging the DAX down 0.4 percent.

French car suppliers Faurecia EPED.PA and Valeo VLOF.PA also fell 1.4 to 2.9 percent.

Small-cap Swiss autos supplier Autoneum AUTON.S also fell 9.3 percent after reporting a drop in profitability. from the tech sector were more encouraging.

Logitech LOGN.S shares rose 1.3 percent to a four-month high after the chipmaker said it expects annual sales to increase by mid to high single-digit in the next financial year ending March 2020.

Dialog Semiconductor DLGS.DE shares jumped 8.6 percent as traders said its headline results were "in line" and a decline in revenue as the Anglo-German chip designer reduces its exposure to Apple (NASDAQ: AAPL ) had already been flagged. Prysmian PRY.MI , the world's largest cable maker, fell 7 percent after its results were deemed a "mixed bag" by analysts and Kepler Cheuvreux downgraded the stock to "hold" from "buy".

The company revised upwards its savings expectations from a U.S. acquisition to offset provisions it has taken on its WesternLink cable connection. among top movers, British American Tobacco (JO: SNHJ ) BATS.L and Imperial Brands IMB.L rose 5.5 and 2.7 percent respectively as investors bet the surprise resignation of U.S. Food & Drug Administration Commissioner Scott Gottlieb may call into question the agency's regulation of e-cigarettes.

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