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Oct. 3, 2019, 10:15 a.m. EDT

European stocks extend declines as global service sector slows; Airbus climbs

Remy Cointreau shares rally as cognac is to be excluded from new tariffs

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By Steve Goldstein, MarketWatch


Getty Images
Cognac will be excluded from new tariffs imposed by the U.S.

European stocks on Thursday turned lower, as a disappointing reading on the U.S. service sector reignited worries about the global economy.

/zigman2/quotes/210599654/delayed SXXP 442.18, -0.31, -0.07%

After suffering its worst single-day loss in nearly 11 months on Wednesday, the Stoxx Europe 600 /zigman2/quotes/210599654/delayed XX:SXXP -0.07% fell further, losing 0.8% to 374.87. Banks and energy producers paced the decline.

The French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 +0.15%  slipped 0.4% to 5398.55 while the U.K. FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -0.28%  fell 1.6% to 7007.62.

The German market was closed for a holiday.

The Institute for Supply Management reported its worst non-manufacturing index in three years, with a reading of 51.8%. The final reading of eurozone services PMI for September was revised lower to 51.6 from the initial 52 reading, and U.K. services PMI fell into contraction territory as it fell to 49.5 from 50.6.

The bad data comes on top of news the U.S. will introduce fresh tariffs on $7.5 billion of European Union goods following a World Trade Organization victory.

“With markets already looking vulnerable over concerns about a manufacturing recession starting to bleed into a slowdown in the services sector, the timing of the WTO ruling could not have come at a worse time for already jittery investors, along with the U.S. response to apply tariffs to a wide range of goods including malt whisky, French wines, and a range of food items, from October 18th,” said Michael Hewson, chief market analysts at CMC Markets UK.

Analysts at Jefferies said the new tariffs actually weren’t as bad as it feared for European alcoholic beverage makers. Remy Cointreau /zigman2/quotes/206802273/delayed FR:RCO +0.65%  shares jumped 5% and Pernod Ricard /zigman2/quotes/204974112/delayed FR:RI +0.56%   rose 3.2%, as cognac, champagne and liqueurs from France were excluded from the tariff list. Diageo /zigman2/quotes/205611832/delayed UK:DGE -0.28%  and Campari /zigman2/quotes/203520627/delayed IT:CPR +1.30%  shares also rose.

Airbus /zigman2/quotes/208224336/delayed FR:AIR -0.95%   was another gainer, rising 3.3%, as parts made by one of its plants in Alabama will not be subject to new sanctions. Analysts at Bank of America Merrill Lynch said investors had feared 100% tariff rates instead of the 10% the U.S. government will levy.

H&M /zigman2/quotes/208522175/delayed SE:HM.B -0.67%  shares jumped 7% as the retail chain reported a stronger-than-forecast profit.

/zigman2/quotes/210599654/delayed
XX : STOXX
442.18
-0.31 -0.07%
Volume: 0.00
April 19, 2021 11:03p
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/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
6,296.69
+9.62 +0.15%
Volume: 57,481
April 19, 2021 6:05p
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/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,000.08
-19.45 -0.28%
Volume: 502,633
April 19, 2021 4:53p
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/zigman2/quotes/206802273/delayed
FR : France: Euronext Paris
169.60
+1.10 +0.65%
Volume: 33,184
April 19, 2021 5:35p
P/E Ratio
101.21
Dividend Yield
0.59%
Market Cap
€8.45 billion
Rev. per Employee
€553,049
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/zigman2/quotes/204974112/delayed
FR : France: Euronext Paris
171.80
+0.95 +0.56%
Volume: 248,696
April 19, 2021 5:39p
P/E Ratio
172.23
Dividend Yield
1.55%
Market Cap
€44.47 billion
Rev. per Employee
€449,936
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/zigman2/quotes/205611832/delayed
UK : U.K.: London
3,221.00 p
-9.00 -0.28%
Volume: 1.52M
April 19, 2021 4:35p
P/E Ratio
67.23
Dividend Yield
2.19%
Market Cap
£75.39 billion
Rev. per Employee
£422,916
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/zigman2/quotes/203520627/delayed
IT : Italy: Milan
10.06
+0.13 +1.30%
Volume: 1.18M
April 19, 2021 5:35p
P/E Ratio
77.92
Dividend Yield
0.55%
Market Cap
€10.95 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/208224336/delayed
FR : France: Euronext Paris
102.70
-0.98 -0.95%
Volume: 1.11M
April 19, 2021 5:38p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
€80.79 billion
Rev. per Employee
€379,995
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/zigman2/quotes/208522175/delayed
SE : Sweden: Stockholm
kr 207.25
-1.40 -0.67%
Volume: 2.46M
April 19, 2021 5:29p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
kr338.79 billion
Rev. per Employee
N/A
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Steve Goldstein is MarketWatch markets editor for Europe. Follow him on Twitter: @MKTWgoldstein.

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