European stocks lower as investors digest a fresh round of corporate earnings; Ubisoft down 17%

European Union member states are in the process of discussing the length of a proposed extension to the U.K.’s October 31 deadline for leaving the EU. The prime minister meanwhile has offered to give British lawmakers more time to debate his deal if they back a general election on December 12.

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European stocks
European stocks

European stocks traded lower on Friday after a substantial round of corporate earnings, while traders also monitored Brexit developments and tense exchanges between the U.S. and China.

TICKER COMPANY NAME PRICE CHANGE %CHANGE VOLUME
FTSE FTSE 100 FTSE 7292.73 -35.52 -0.48 277263976
DAX DAX DAX 12853.43 -18.67 -0.15 32473059
CAC CAC CAC 5697.16 12.83 0.23 34783453

 

The pan-European Stoxx 600 slid 0.3% by mid-afternoon, with autos rising 1% to lead gains while food and beverages dropped 1.4% as a majority of sectors traded in negative territory.

The state of limbo for Brexit is set to carry into next week after EU ambassadors agreed on the need to grant the U.K. a third extension to its deadline for leaving the bloc, but failed to reach a consensus on its duration.

Global markets are also reacting to critical comments from U.S. Vice President Mike Pence toward China which evoked ire in Beijing as the world’s two largest economies continue talks aimed at bringing an end to their protracted trade war.

On the data front, German business morale held firm in October with the Ifo Institute’s business climate index coming in at 94.6, unchanged from the previous month and slightly above estimates.

Earnings in focus

Traders are also reacting to a slew of corporate earnings for the third quarter released on Friday morning.

British lender Barclays reported a net loss for the third quarter on Friday after being hit by $1.4 billion ($1.8 billion) worth of insurance claims, but traded 1% higher on the back of strong underlying figures.

Belgian brewer AB InBev posted flat third-quarter EBITDA (earnings before interest, tax, depreciation and amortization), sending the stock tumbling 8.3%.

French luxury group Kering saw its shares climb 10.2% to lead the Stoxx 600 after reporting stronger-than-expected third-quarter earnings, closely followed by Italian clothing brand Moncler, which climbed 9.3% after a positive earnings report.

At the bottom of the European blue chip index, United Internet shares plunged 20.3% after an independent expert rejected a request from its unit Drillisch to retroactively reduce its prices under an agreement with Telefonica Deutschland, according to Reuters.

Ubisoft fell 17% after cutting its profit guidance and delaying the release for some triple-A games.

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