European stocks retreated after data showed the euro area’s recovery unexpectedly stalled in the second quarter as its three biggest economies failed to grow. U.S. futures were little changed, while Asian shares rose.
RWE AG declined 2.9 percent after saying first-half profit fell 62 percent. Novozymes (NZYMB) A/S slid 5.4 percent after the supplier of enzymes reported second-quarter net income that trailed analyst estimates. ThyssenKrupp AG climbed 1 percent after posting quarterly earnings that beat projections. Royal Boskalis Westminster NV surged 8.7 percent after saying it will start a share buyback program.
The Stoxx Europe 600 Index dropped 0.2 percent to 329.27 at 10:32 a.m. in London. The equity benchmark gauge has fallen 2 percent this month amid
crises in Ukraine, Iraq and the Gaza Strip. Standard & Poor’s 500 Index futures slipped 0.1 percent today, while the MSCI Asia Pacific Index rose 0.4 percent, climbing for a fourth day.
“There are a lot of headwinds for the market at the moment,” Stuart Fraser, who oversees $88 billion as head of European equities at Kames Capital in Edinburgh, said by telephone. “We’re in a period of stagnation. Policy makers will have to take a severe look at what’s going on, particularly on the back of the German economic statistics.”
Euro-region gross domestic product in the three months through June was unchanged from the first quarter, when it increased 0.2 percent, Eurostat, the European Union’s statistics office in Luxembourg, said today. The median forecast in a Bloomberg News survey was for growth of 0.1 percent.
German Economy
Germany’s economy contracted last quarter more than expected, France failed to grow, while Italy fell into its third recession since 2008.In the U.S., data at 8:30 a.m. in Washington may show applications for jobless claims rose in the week ended Aug. 9 to 295,000 from 289,000 in the prior period, economists predicted.
RWE slid 2.9 percent to 28.48 euros. Recurrent net income, the measure used to calculate dividends, dropped to 749 million euros ($1 billion) in the six months ended June 30 from 1.99 billion euros a year earlier. That missed the 790 million-euro average analyst estimate. Sales fell 9.6 percent to 25.1 billion euros.
Novozymes dropped 5.4 percent to 263 kroner. The Danish company reported second-quarter net income of 591 million kroner ($106 million), trailing analysts’ projections of 608 million kroner. Sales during the period also fell short of estimates.
GN Store Nord A/S (GN) retreated 3.9 percent to 137.10 kroner. The Danish hearing-aid maker reported second-quarter net income of 190 million kroner, missing the 216 million kroner estimated by analysts.
William Demant
William Demant Holding A/S slid 5.9 percent to 464.20 kroner. The hearing-aid maker reported first-half earnings before interest and taxes of 834 million kroner, falling short of the 920 million kroner forecast by analysts.ThyssenKrupp added 1 percent to 21.18 euros. Germany’s largest steelmaker posted a profit at its previously loss-making Steel Americas unit. Adjusted Ebit from continuing operations almost tripled to 398 million euros in the three months through June. Analysts had predicted 363.6 million euros. Sales in its fiscal third quarter rose 8.3 percent to 10.7 billion euros.
Boskalis Westminster surged 8.7 percent to 41.72 euros for its biggest gain since November 2010. The world’s largest dredging company said it will buy back as many as 10 million shares in the next 2 1/2 years. Boskalis also said first-half earnings before interest, taxes, depreciation and amortization jumped to 466 million euros from 280 million euros a year ago.
United Internet AG rallied 6.6 percent to 31.81 euros. First-half sales increased 12 percent from a year earlier to 1.43 billion euros. Ebitda climbed 36 percent to 237.6 million euros.
TUI AG rose 3.7 percent to 10.90 euros. Operating profit at the owner of Europe’s largest tour operator jumped 89 percent in the third quarter as it cut costs, raised prices and improved hotel booking levels.
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