Miners, mixed earnings drag down European stocks

Concerns about Chinese intervention hit metal prices

Photograph: iStock

Photograph: iStock

 

European stocks slipped on Wednesday, with miners in the lead after concerns about Chinese intervention hit metal prices, while mixed corporate earnings reports kept investors on edge.

The pan-European Stoxx 600 fell 0.2 per cent but held just below its record high hit in August. Asian tech stocks slid on the back of a spike in short-term US Treasury yields and new regulatory concerns in China.

European miners fell the most with a 1.4 per cent drop, as Chinese steel futures declined with raw material prices plunging amid government intervention to cool commodity prices.

Deutsche Bank slid 2.9 per cent despite posting a better-than-expected quarterly profit, while Swedish-listed online gambling operator Kindred Group slumped 12.7 per cent to the bottom of Stoxx 600 after quarterly results.

Meanwhile, electrical equipment maker Schneider Electric jumped 3.1 per cent after it reported a better-than-expected quarterly revenue growth.

Swiss software specialist Temenos surged 14.1 per cent after a report that buyout firm EQT AB was in the early stages of considering a bid for the firm.

UK stocks also slipped on Wednesday, with the commodity-heavy FTSE 100 index down 0.1 per cent by 0729 GMT. Miners declined 1.5 per cent as prices of aluminium and other metals fell after coal prices tumbled on China’s intervention plans. Miners Glencore, Rio Tinto and Anglo American fell between 1.3 per cent and 2 per cent in morning trade. The domestically focussed mid-cap index inched up 0.1 per cent. Harry Potter publisher Bloomsbury Publishing announced an increase in dividend after reporting a strong rise in half-year revenue and profit, pushing its stock up 5.1 per cent.– Reuters