Modupe Gbadeyanka
By Investors Hub
European stocks have fallen on Thursday as investors digested a slew of disappointing earnings reports and fretted over the standoff between Spain and Catalonia.
Worries over Catalonia re-emerged after the Spanish government said it would continue with the procedures set out in Article 155 of the Constitution to restore the legality of self-rule in the region.
Spain Prime Minister will convene a special Cabinet meeting Saturday to trigger process to take control of Catalonia’s powers.
Investors also remained focused on the summit of European Union heads of state later in the day and the Senate vote to pass a budget measure that is crucial to U.S. President Donald Trump’s hopes of overhauling the tax code before the end of the year.
While the German DAX Index has slumped by 0.9 percent, the French CAC 40 Index is down by 0.7 percent and the U.K.’s FTSE 100 Index is down by 0.6 percent.
Kion shares have plummeted 12.7 percent after the German manufacturer of materials handling equipment cut its 2017 revenue and profit guidance, citing weak orders for its warehouse automation business.
Technology firm SAP has also moved lower as its third-quarter profit missed expectations. French advertising group Publicis Groupe has slumped after its third-quarter sales came in below market forecasts.
Aerospace and defense technology group Thales has moved to the downside after reporting a drop in third quarter sales. Consumer products giant Unilever has also fallen after a weak third-quarter update.
Workspace provider IWG has plunged as much as 34 percent after it issued a profit warning, citing natural disasters and weakness in London trading.
Swiss drug major Roche Holding has also moved lower after posting muted sales growth for the first nine months of the year.
On the positive side, Pernod Ricard shares have jumped after the French drinks maker confirmed its profit target after posting a better-than-expected 5.7 percent rise in first-quarter underlying sales.
Retailer Carrefour has also rallied after reporting growth in third-quarter sales despite soft demand in France.
The pound stayed weak against both the dollar and euro after official data showed U.K. retail sales declined more than expected in September.
