UPDATE 2-European shares on course for worst month since 2015

  • Reuters
  • Stock Market News
UPDATE 2-European shares on course for worst month since 2015
Credit: © Reuters.

* STOXX down 1.2 pct

* Valeo plunges 21 pct on 2nd profit warning in 3 months

* Banco Sabadell jumps on profit beat (Adds closing prices)

By Helen Reid and Julien Ponthus

LONDON, Oct 26 (Reuters) - European shares were on course for their worst month since 2015 on Friday after a spreading global sell-off hit regional equity markets and missed results expectations sapped risk appetite.

The leading index of euro zone stocks .STOXX50E fell 1.4 percent with Germany's DAX .GDAXI down 0.9 percent and France's CAC 40 .FCHI down 1.3 percent.

The pan-European STOXX 600 lost 1.2 percent and is down about 8 percent so far in October, a size of fall not seen since August 2015.

Overall the third-quarter earnings season has been marred by rolling sell-offs across global markets.

Wary analysts were downgrading their earnings estimates for the MSCI Europe index .dMIEU00000PUS at their fastest pace since Feb 2016 and disappointments over results caused sharp share falls.

Shares in French auto parts maker Valeo VLOF.PA sank more than 21 percent after its second profit warning in three months flagged disruption from tougher European emissions tests and a sharp sales downturn in China. Faurecia EPED.PA also tumbled 5.7 percent after it agreed to buy Japanese car navigation system maker Clarion from Hitachi. autos & parts sector index .SXAP fell 1.6 percent.

Swedish appliances maker Electrolux ELUXb.ST fell 4.4 percent after it trimmed its market demand expectations and forecast higher costs due to increasing raw material prices and tariffs. in French household appliances maker SEB SEBF.PA fell 11 percent for their worst day since 2012 after the company cut revenue guidance due to a "difficult environment" with FX and raw material costs rising. posting its worst ever daily fall after disappointing results was Spanish sausage casings producer Viscofan VIS.MC . Its shares fell 19.4 percent after it warned it would miss full-year profit guidance. Cheuvreux analysts downgraded the stock to "reduce" from "hold".

Altran ALTT.PA shares were a bright spot, surging 15.3 percent after the engineering and tech consultancy reported strong third-quarter results thanks to good growth in Germany and the Americas. from banks were more mixed after encouraging results from UBS boosted its shares in the previous session.

Spain's Banco Sabadell SABE.MC topped the IBEX with a 5.1 percent gain after third-quarter profit beat expectations. MSCI Europe earnings revised down sharply

https://tmsnrt.rs/2RipSq6

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