European Stocks Close Sharply Lower
European stocks reversed their early gains and closed sharply lower on Thursday amid a batch of pessimistic corporate results, while markets continued to assess the European macroeconomic outlook.
The STOXX 50 dropped 1.3% to close at 5,325 and the STOXX 600 fell 0.7% to 546. AB InBev sank 11.6% after posting a decline in sales volumes in Brazil and China, two major markets.
Also, Ferrari lost 11.7%, it's largest drop since being listed in 2016, after missing expectations for both earnings and revenues. Further, Sanofi tanked 7% following a revenue miss and Schneider Electric fell 4.5% after reporting a decline to their margins, despite strong results in their data center business.
In turn, Hermes and Adidas dropped more than 4% each to extend their earnings-driven slump yesterday. On the other hand, BBVA soared 8% following their results.
Meanwhile, the Fed left interest rates unchanged, but hawkish remarks from Chair Powell reduced expectations for a rate cut in September.
Source : Trading Economics
