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Oct. 27, 2016, 12:04 p.m. EDT

European stocks waver after earnings deluge, upbeat U.K. GDP

Nokia slumps after reporting a loss — again

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By Sara Sjolin, MarketWatch


Shutterstock/Gil C

European stock wobbled into the close on Thursday, as investors digested a raft of earnings reports and better-than-expected growth data from the U.K.

The Stoxx Europe 600 index /zigman2/quotes/210599654/delayed XX:SXXP -0.14%  ended down less than 0.1% at 341.71, after a 0.4% slide on Wednesday.

The pan-European benchmark swung between small gains and losses throughout the day and had opened firmly lower after a downbeat session in Asia. China said industrial profits fell to 7.7% year-over-year growth in September, a sharp slowdown from the 19.5% recorded the month before.

Other movers: But during the day, markets in Europe trimmed losses as investors analyzed the deluge of earnings that came out on Thursday.

Deutsche Bank AG /zigman2/quotes/207242873/delayed XE:DBK -0.05%   /zigman2/quotes/203042512/composite DB +1.88%  shares ended up 0.6%, after the German lender posted an unexpected profit and set aside more money for litigation costs.

Posting on of the biggest losses in the pan-European benchmark, shares of AMEC Foster Wheeler PLC tanked 20% after the oilfield-services company said it continues to see weakness in some key markets.

Nokia Oyj /zigman2/quotes/203672305/delayed FI:NOKIA -1.22%   /zigman2/quotes/207421390/composite NOK +0.85%  slumped 7.6% after the telecommunications-equipment reported a quarterly loss for the third time in a row.

Engineering giant ABB Ltd. /zigman2/quotes/201477239/delayed CH:ABBN -0.23%  lost 6.6% after its third-quarter revenue dropped because of uncertainties over the U.S. presidential election and the U.K.’s vote to leave the European Union.

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Two powerful aftershocks struck central Italy late Wednesday, damaging buildings and historic monuments just two months after an earthquake left 300 dead in the area. Photo: EPA

Telefonica SA /zigman2/quotes/200416613/delayed ES:TEF -0.46%  gave up 1% after the Spanish telecoms major cut its 2016 and 2017 dividends.

On a more upbeat note, STMicroelectronics NV /zigman2/quotes/203551318/delayed IT:STM +1.35%  jumped 11% as investors welcomed its outlook for the rest of the year.

Shares of Technip SA  climbed 2.2% after the oil-field-services company reported better-than-expected earnings.

Statoil ASA  added 2.2%. The Norwegian oil giant said it will cut expenses after posting a third-quarter loss.

Barclays PLC /zigman2/quotes/208409333/delayed UK:BARC -1.80%   /zigman2/quotes/206581728/composite BCS +0.99%  gained 4.8% after the U.K. lender posted better-than-expected adjusted profit.

Economic news: The U.K. economy proved to be more resilient than expected after the Brexit vote, with gross domestic product expanding 0.5% in the third quarter. Economists had expected GDP growth of around 0.3%, which was already higher than the forecasts published immediately after the EU referendum in June.

The growth rate still marked a slowdown from the 0.7% recorded in the second quarter.

“Growth of 0.5% quarter-on-quarter undeniably means that the economy was solid (if somewhat lopsided) in the immediate aftermath of June’s Brexit vote, despite appreciable serious concern that activity could immediately head south,” said Howard Archer, chief U.K. and European economist at IHS Global Insight, in a note.

“However, there are still major challenges for the economy ahead — not least when Article 50 is triggered,” he added.

The pound /zigman2/quotes/210561263/realtime/sampled GBPUSD -0.0498%  rallied after the report, buying as much as $1.2272 compared with $1.2240 ahead of the data and the $1.2246 recorded late Wednesday in New York. Sterling, however, quickly gave up most of the gain to trade at $1.2156 at the time of the European market close.

Indexes: The U.K.’s FTSE 100 index /zigman2/quotes/210598409/delayed UK:UKX -0.59%  gained 0.4% to 6,986.57 as investors digested the data and the pound move.

Germany’s DAX 30 index /zigman2/quotes/210597999/delayed DX:DAX +0.33%  added 0.1% to 10,717.08, while France’s CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 +0.14%  ended marginally lower at 4,533.57.

/zigman2/quotes/210599654/delayed
XX : STOXX
437.32
-0.61 -0.14%
Volume: 0.00
May 13, 2021 11:03p
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/zigman2/quotes/207242873/delayed
XE : Germany: Xetra
11.59
-0.0060 -0.05%
Volume: 9.05M
May 13, 2021 6:30p
P/E Ratio
17.13
Dividend Yield
0.00%
Market Cap
€23.95 billion
Rev. per Employee
€393,992
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/zigman2/quotes/203042512/composite
US : U.S.: NYSE
$ 14.09
+0.26 +1.88%
Volume: 3.07M
May 13, 2021 4:00p
P/E Ratio
17.44
Dividend Yield
0.00%
Market Cap
$28.92 billion
Rev. per Employee
$449,141
loading...
/zigman2/quotes/203672305/delayed
FI : Finland: Helsinki
4.01
-0.05 -1.22%
Volume: 8.56M
May 12, 2021 6:29p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
€22.62 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/207421390/composite
US : U.S.: NYSE
$ 4.75
+0.04 +0.85%
Volume: 34.77M
May 13, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$27.31 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/201477239/delayed
CH : Switzerland: SWX
CHF 29.92
-0.07 -0.23%
Volume: 4.59M
May 12, 2021 5:31p
P/E Ratio
13.01
Dividend Yield
2.67%
Market Cap
CHF60.76 billion
Rev. per Employee
CHF231,756
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/zigman2/quotes/200416613/delayed
ES : Spain: Madrid
3.92
-0.02 -0.46%
Volume: 22.36M
May 13, 2021 5:38p
P/E Ratio
15.61
Dividend Yield
8.27%
Market Cap
€21.04 billion
Rev. per Employee
€381,890
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/zigman2/quotes/203551318/delayed
IT : Italy: Milan
28.92
+0.39 +1.35%
Volume: 4.02M
May 13, 2021 5:35p
P/E Ratio
24.84
Dividend Yield
0.69%
Market Cap
€25.81 billion
Rev. per Employee
€194,807
loading...
/zigman2/quotes/208409333/delayed
UK : U.K.: London
178.20 p
-3.26 -1.80%
Volume: 41.30M
May 13, 2021 4:35p
P/E Ratio
N/A
Dividend Yield
0.56%
Market Cap
£30.81 billion
Rev. per Employee
£332,602
loading...
/zigman2/quotes/206581728/composite
US : U.S.: NYSE
$ 10.19
+0.10 +0.99%
Volume: 9.87M
May 13, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
0.53%
Market Cap
$43.43 billion
Rev. per Employee
$426,514
loading...
/zigman2/quotes/210561263/realtime/sampled
US : Tullett Prebon
1.4044
-0.0007 -0.0498%
Volume: 0.0000
May 13, 2021 9:55p
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/zigman2/quotes/210598409/delayed
UK : FTSE UK
6,963.33
-41.30 -0.59%
Volume: 641,085
May 13, 2021 4:58p
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/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
15,199.68
+49.46 +0.33%
Volume: 64,374
May 13, 2021 6:30p
loading...
/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
6,288.33
+8.98 +0.14%
Volume: 64,872
May 13, 2021 6:05p
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Sara Sjolin is a MarketWatch reporter based in London. Follow her on Twitter @sarasjolin.

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