UPDATE 2-European shares retreat as trade worries weigh on Wall Street

  • Reuters
  • Stock Market News
UPDATE 2-European shares retreat as trade worries weigh on Wall Street
Credit: © Reuters.

* STOXX down 0.75 pct

* Wall Street falls at the open

* Smith & Nephew, Bpost top fallers as results disappoint (Adds Wall Street, closing prices)

By Danilo Masoni and Julien Ponthus

MILAN/LONDON, May 3 (Reuters) - European bourses closed in negative territory on Thursday at the end of a session laden with corporate earnings and as worries over global trade tensions weighed on Wall Street.

The pan-European STOXX 600 index .STOXX fell 0.75 percent, retracing from three-month highs while in New York, the S&P 500 .SPX , the Dow Jones Industrial Average .DJI and the Nasdaq NDX were down 1.2 percent, 1.4 percent and 1.3 percent respectively.

"Global stocks are on the slide in the wake of a weak U.S. open today, with trade fears and a strengthening dollar weighing on sentiment", said Joshua Mahony, a market analyst at IG.

Treasury Secretary Steven Mnuchin has arrived in Beijing for talks on tariffs but with state media saying China will stand up to the U.S., a breakthrough is viewed as unlikely, especially as the delegation is expected to leave as early as Friday evening.

Outside of an overall negative market sentiment, a series of disappointing earning updates also dragged European stocks down.

Smith & Nephew SN.L slumped 7 percent after Europe's biggest artificial hip and knee maker cut its forecast for full-year underlying revenue growth after some markets softened and it saw a slowdown in its bioactives business. on from weak results from competitors, results across most product lines were slightly soft... However, Bioactives was the major disappointment," said UBS in a note.

Belgium's Bpost BPOST.BR plunged 13 percent, leading fallers on the STOXX as it missed expectations and Norwegian media group Schibsted SBSTA.OL also declined 5.3 after its results disappointed.

Adidas ADSGn.DE fell as much as 6.8 percent after the German sportswear firm posted sales growth slightly shy of analyst expectations. elsewhere showed the negative impact of strength in the euro during the first quarter.

German drug and crop chemical Bayer BAYGn.DE cut its full-year guidance as a stronger euro weighs on the value of overseas revenues. Its shares edged up 0.35 percent.

Adverse currency moves also led to a 2 percent revenue drop at healthcare group Fresenius FREG.DE and resulted in a lower-than-expected core profit for Belgian chemicals group Solvay SOLB.BR .

Fresenius fell 1 percent and Solvay was down 5.7 percent.

Elsewhere, however, some well-received company updates provided support. Logitech LOGN.S rose 6.5 percent and French utility Veolia VIE.PA added 2.6 percent as its domestic water business returned to growth and international activities also showed double-digit growth.

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