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Oct. 18, 2019, 5:04 a.m. EDT

European stocks lower after Chinese growth slows and Renault warns

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By Steve Goldstein, MarketWatch


Reuters
French carmaker Renault headquarters is seen ahead of the company's news conference in Boulogne-Billancourt, near Paris, France, October 11, 2019.

European stocks weakened Friday after the release of data showing a slowdown in Chinese growth and a warning from French automaker Renault.

The Stoxx Europe 600 /zigman2/quotes/210599654/delayed XX:SXXP -0.98%   declined 0.12% to 392.59.

The German DAX /zigman2/quotes/210597999/delayed DX:DAX -0.33%  fell 0.03% to 12650.98, the French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 -1.42%  fell 0.34% to 5653.86 and the U.K. FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -1.59%  weakened 0.26% to 7163.94.

China on Friday reported the worst growth in 27 years, as GDP slowed to a 6% year-over-year rate in the third quarter as fixed investment dipped.

“Investment is import intensive, so taxing trade taxes [hurts] investment. Uncertainty about trade also gives companies reason to pause in their investment. However, it is reasonable to suggest that – as long as there are no more trade taxes – the worst of the investment slowdown may be behind us,” said Paul Donovan, an economist at UBS.

Renault /zigman2/quotes/200919924/delayed FR:RNO -2.23%  fell 12.7% as the company said its operating margin for the year would be 5% instead of 6%, and that revenue should fall between 3% and 4%.

Deutsche Bank downgraded the stock to hold from buy, as the broker pointed out that rising costs more than lower revenue was responsible for the profit warning. “Thus, there is a risk that the situation will not improve next year since most of these additional costs are expected to be recurrent,” the broker said.

Other automakers including Daimler /zigman2/quotes/205332368/delayed DE:DAI +0.28%   and Fiat Chrysler Automobiles /zigman2/quotes/209202731/delayed IT:FCA -1.21%  also fell.

Danone /zigman2/quotes/205561941/delayed FR:BN +2.05%  dropped 7.2% as the yogurt maker reported third-quarter organic sales growth of 3%, which was lower than forecast, and cut its annual guidance to 2.5% growth from 3%. Danone said disappointing U.S. yogurt sales and weakness in European bottled water revenue weighed on its results.

Getinge /zigman2/quotes/200454589/delayed SE:GETI.B +1.16%  rallied 18% as the Swedish medical technology company reported 4.8% organic sales growth and 3.5% increase in orders during the third quarter.

/zigman2/quotes/210599654/delayed
XX : STOXX
389.36
-3.87 -0.98%
Volume: 0.00
Nov. 30, 2020 5:50p
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/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
13,291.16
-44.52 -0.33%
Volume: 107,366
Nov. 30, 2020 6:30p
loading...
/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
5,518.55
-79.63 -1.42%
Volume: 147,859
Nov. 30, 2020 6:05p
loading...
/zigman2/quotes/210598409/delayed
UK : FTSE UK
6,266.19
-101.39 -1.59%
Volume: 1.33M
Nov. 30, 2020 4:55p
loading...
/zigman2/quotes/200919924/delayed
FR : France: Euronext Paris
33.36
-0.76 -2.23%
Volume: 3.78M
Nov. 30, 2020 5:36p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
€9.89 billion
Rev. per Employee
€309,286
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/zigman2/quotes/205332368/delayed
DE : Germany: Frankfurt
56.61
+0.16 +0.28%
Volume: 10,503
Nov. 30, 2020 7:39p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
€560,333
loading...
/zigman2/quotes/209202731/delayed
IT : Italy: Milan
13.07
-0.16 -1.21%
Volume: 9.05M
Nov. 30, 2020 5:35p
P/E Ratio
687.68
Dividend Yield
0.00%
Market Cap
€26.77 billion
Rev. per Employee
€564,203
loading...
/zigman2/quotes/205561941/delayed
FR : France: Euronext Paris
53.86
+1.08 +2.05%
Volume: 4.17M
Nov. 30, 2020 5:45p
P/E Ratio
18.47
Dividend Yield
3.90%
Market Cap
€34.27 billion
Rev. per Employee
€246,406
loading...
/zigman2/quotes/200454589/delayed
SE : Sweden: Stockholm
kr 183.15
+2.10 +1.16%
Volume: 2.40M
Nov. 30, 2020 5:29p
P/E Ratio
16.36
Dividend Yield
0.82%
Market Cap
kr49.31 billion
Rev. per Employee
kr2.30M
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Steve Goldstein is MarketWatch markets editor for Europe. Follow him on Twitter: @MKTWgoldstein.

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