European Markets Pulled Back On Weak Data & Earnings

(RTTNews) - The European markets ended Wednesday's session in the red, extending its losses from the previous session. Investor sentiment was impacted by some disappointing regional economic data and some weaker than expected corporate earnings results.

Euro area private sector expanded at a slower pace as estimated in April, Eurozone retail sales dropped for the first time in five months in March. British construction growth also eased more than expected in April to the weakest level in almost three years.

The Euro Stoxx 50 index of eurozone bluechip stocks decreased 1.19 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 1.52 percent.

The DAX of Germany dropped 0.99 percent and the CAC 40 of France fell 1.09 percent. The FTSE 100 of the U.K. declined 1.19 percent and the SMI of Switzerland finished lower by 1.24 percent.

In Frankfurt, chipmaker Dialog Semiconductor plummeted 8.60 percent after cutting its full-year revenue outlook.

Car-parts maker Continental lost 0.40 percent after reiterating preliminary figures published on April 29.

Deutsche Telekom declined 2.31 percent despite its Q1 revenue and profits coming in ahead of estimates.

HeidelbergCement climbed 1.37 percent. The company raised its outlook for 2016 after posting a narrower Q1 loss.

Siemens rose 1.38 percent. The industrial group affirmed its FY16 outlook despite reporting a 63 percent drop in second-quarter net profit.

Adidas surrendered 0.88 percent. The company reported that its net income attributable to shareholders for the first-quarter rose to 351 million euros or 1.71 euros per share from 221 million euros or 1.08 euros per share in the prior year quarter.

In Paris, Air France KLM dropped 4.34 percent. The airline group warned of geopolitical risks and airline overcapacity after narrowing its first-quarter loss, helped by lower fuel costs.

Resource management firm Veolia Environnement fell 4.02 percent on reporting an 18 percent fall in first-quarter net income.

Societe Generale climbed 1.68 percent. The lender revealed further plans to cut costs this year after reporting a surprise increase in first-quarter profit.

In London, mining giant BHP Billiton fell 5.77 percent on concerns the penalties associated with the Samarco dam disaster may be worse than initially thought.

Glencore decreased 3.17 percent on reports the commodities giant is trying to sell its Vasilkovskoye gold mine in Kazakhstan.

London Stock Exchange lost 4.20 percent after Intercontinental Exchange confirmed that it has no current intention to make an offer for the company.

J Sainsbury tumbled 6.27 percent. The supermarket chain issued a cautious outlook after reporting a 14 percent drop in annual pretax profits.

Imperial Brands dropped 0.80 percent. The tobacco maker affirmed its full-year guidance after reporting a drop in first-half profit.

Royal Dutch Shell declined 2.54 percent on posting an 89 percent drop in first-quarter net profit on weak revenues.

Next gained 3.46 percent. Next Retail sales were down 4.7 percent, while Next Directory sales grew 4.2 percent.

Anheuser-Busch InBev weakened by 1.90 percent in Brussels after it posted a sharp decline in profit for the first quarter from last year on lower revenues.

A.P. Moller-Maersk jumped 6.38 percent in Copenhagen after it reported that its first-quarter profit attributable to the company fell to $211 million from $1.54 billion in the prior-year quarter.

Eurozone retail sales dropped for the first time in five months in March, Eurostat reported Wednesday. Retail sales slid 0.5 percent month-on-month in March, reversing a revised 0.3 percent rise in February. Economists had forecast a marginal 0.1 percent fall for March. Sales dropped for the first time since last October.

The euro area private sector expanded at a slower pace as estimated in April, final survey data from Markit showed Wednesday. The composite output index dropped marginally to 53 in April, in line with flash estimate, from 53.1 in March. The index signaled expansion in each of the past 34 months.

The French trade deficit narrowed in March due to a fall in imports, the customs office said Wednesday. The trade shortfall decreased to EUR 4.36 billion from EUR 5.11 billion in February. It was forecast to narrow more sharply to EUR 4.2 billion.

France's current account deficit in March narrowed from the previous month, figures from the Bank of France showed Wednesday. The seasonally-and-working-day adjusted current account deficit decreased to EUR 1.8 billion from EUR 4.1 billion in February.

The British construction sector expanded at the weakest pace in almost three years as spending decisions were delayed by clients on "Brexit" fears, survey data from Markit Economics and the Chartered Institute of Procurement & Supply showed Wednesday.

The Markit/CIPS construction Purchasing Managers' Index fell to 52.0 in April from 54.2 in the previous month. Economists had expected the index to drop slightly to 54.0.

U.K. shop prices continued to fall and marking the three-year anniversary of declines, survey data from the British Retail Consortium showed Wednesday. Shop prices decreased 1.7 percent year-on-year in April, same as in March. The pace of decline was in line with the 12-month average.

Private sector employment in the U.S. increased by less than expected in the month of April, according to a report released by payroll processor ADP on Wednesday. ADP said the private sector added 156,000 jobs in April following an increase of 194,000 jobs in March. Economists had expected the addition of 193,000 jobs for the month.

Labor productivity in the U.S. continued to decrease in the first quarter of 2016, the Labor Department revealed in a report on Wednesday.

The report said labor productivity fell by 1.0 percent in the first quarter after sliding by 1.7 percent in the fourth quarter. Economists had expected productivity to drop by 1.2 percent.

Meanwhile, the Labor Department said unit labor costs surged up by 4.1 percent in the first quarter following a 2.7 percent jump in the fourth quarter. Costs had been expected to climb by 3.5 percent.

Reflecting a steep drop in the value of imports, the Commerce Department released a report on Wednesday showing a notably narrower U.S. trade deficit in the month of March. The report said the trade deficit narrowed to $40.4 billion in March from $47.0 billion in February. The deficit had been expected to narrow to $41.4 billion.

Activity in the U.S. service sector grew at a faster rate in the month of April, according to a report released by the Institute for Supply Management on Wednesday. The ISM said its non-manufacturing index climbed to 55.7 in April from 54.5 in March, with a reading above 50 indicating growth in the service sector. Economists had expected the index to inch up to 54.7.