European stocks were muted on Friday, paring an initial decline at the market open, as gains for the energy sector helped offset a slump in Sanofi, NatWest Group Plc and Moncler SpA after disappointing earnings.
The Stoxx 600 index was little changed at 11:25 a.m. in London, with the energy and chemicals sectors gaining while the healthcare subindex lagged. Drugmaker Sanofi plunged 16% after a surprise forecast for lower profit next year overshadowed optimism about a plan to spin off the consumer health division.
Among other single stocks, UK lender NatWest plummeted after it cut its margin guidance, while Italy’s Moncler became the latest luxury company to disappoint this season as analysts noted weaker trends into the latter part of the year. Drinks company Remy Cointreau SA also fell after cutting its annual sales guidnce.
There were a few bright spots in earnings, including Ubisoft Entertainment SA, which soared after the video-game maker reported a “major bookings beat” for the second quarter.
“Pessimism still prevails for EU stock investors, mainly weighed down by a disappointing earnings season and continuing geopolitical concerns,” said Pierre Veyret, technical analyst at ActivTrades. “Even if share prices have become much more attractive in the last part of 2023, the uncertain environment still makes it hard for investors to find good reasons to buy.”
US stocks looked set to rebound as Nasdaq futures rose following upbeat earnings from tech heavyweights Amazon.com Inc. and Intel Corp on Thursday. The positive results come after Facebook owner Meta Platform Inc.’s results added to concerns about the tech sector.
For more on equity markets:
- Things Look Bad, Yet a Rebound Isn’t Impossible: Taking Stock
- M&A Watch Europe: TotalEnergies, Covestro, Sanofi, UniCredit
- Worldline Faces Repayment on Busted Convertible Bonds: ECM Watch
- US Stock Futures Rise; Dexcom Inc, NerdWallet, Coursera Gain
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--With assistance from Michael Msika.
