European stocks traded in negative territory, approaching its fifth consecutive sessional fall. In the course of trading influence news from the Asia-Pacific region, as well as corporate reports.
"The fall is mainly due to China. I think that many investors expect that the growth of the Chinese economy will continue to slow down, and this slowdown is not yet fully reflected in the quotations of European shares," - said the expert Peregrine & Black Markus Huber. Recall Chinese stocks fell today by 8.5%. In addition, the data showed that the profits of Chinese industrial companies in June decreased by 0.3% per year, after rising 0.6% in May.
Meanwhile, the market was supported by the German statistics. These Munich institute IFO, showed that the index of business sentiment in Germany rose unexpectedly in July, recording the first increase since April. According to the report, the July business climate index rose to a level of 108.0 compared with 107.5 in June (revised from 107.4). The latter value was the highest since May this year. Analysts had expected the index to fall to 107.2 points. The current conditions index from the IFO rose in July by 0.8 points, to 113.9 points, while the expectations index jumped to 102.4 points from 102.1 (revised from 102.0). It forecasts a decline of data rate to 113 and 101.8, respectively. "Business expectations were somewhat more optimistic, after declining for three consecutive months. The recent easing concerns about Greece helped to improve sentiment on the German economy," - said in a press release IFO.
Shares of Swiss bank UBS AG fell 1.2 percent, despite the unexpectedly high quarterly profit. Meanwhile, analysts Citigroup Inc. They noted that a higher than expected amount of profit is likely to be a one-off.
The gauge of banks' shares shows the largest decline among the 19 industry groups. Quotes of German Deutsche Bank and Commerzbank fell 1.7 percent and 2.3 percent, respectively.
The cost of Ryanair Holdings Plc - Europe's largest budget airline - decreased by 0.9 percent since the company announced that the surplus of transport capacity could put pressure on the price of tickets. In the last quarter of the average cost of a ticket on the routes Ryanair declined by 4%.
Paper Merlin Entertainments Plc fell 3.8 percent, which was associated with a decrease in earnings forecast for the current year.
Capitalization of Royal Philips NV - the manufacturer of consumer electronics - increased by 5.0 percent due to higher profit than analysts had expected.
The cost of Reckitt Benckiser Group Plc rose 2.2 percent. The company said that the increase in revenues in the second quarter exceeded the forecasts of experts.
FTSE 100 6,568.95 -10.86 -0.17%
CAC 40 4,985.68 -71.68 -1.42%
DAX 11,195.84 -151.61 -1.34%