March 23, 2016 / 3:51 PM / 4 years ago

European shares led lower by miners, Credit Suisse outperforms

* Miners lead sectoral fallers as metal prices fall

* Credit Suisse outperforms banks on new cost-cutting plans

* Poste Italiane, Kingfisher rise after earning updates

* William Hill slumps after warning of lower profits (ADVISORY- Reuters plans to replace intra-day European and UK stock market reports with a Live Markets blog on Eikon - see cpurl://apps.cp./cms/?pageId=livemarkets for site in development. See the bottom of the report. Adds details, updates prices)

By Sudip Kar-Gupta and Danilo Masoni

LONDON/MILAN, March 23 (Reuters) - European shares slipped on Wednesday, after a dip in the previous session following deadly attacks in Brussels, with miners leading the decline on weaker metal prices.

Credit Suisse outperformed its sector on news the Swiss bank was cutting costs further.

The pan-European FTSEurofirst 300 index fell 0.5 percent to 1,331.8 points at 1534 GMT, while the euro zone’s blue-chip Euro STOXX 50 index dropped 0.7 percent.

The STOXX Europe 600 Basic Resources Index fell 2.9 percent, topping sectoral fallers, as metal prices declined after the dollar strengthened on hawkish comments from U.S. Federal Reserve policymakers.

Credit Suisse rose 0.8 percent after it announced 800 million Swiss francs in extra cost savings and plans to shrink its investment bank further with 2,000 new jobs cuts as it pushes ahead with a restructuring.

“It is positive that Credit Suisse is taking more action and reducing risk weighted assets in global markets,” said RBC Europe analyst Fiona Swaffield.

Also among the gainers, technology group Hexagon rose 3.8 percent after Morgan Stanley raised its rating on the stock to “overweight” from “equal weight”.

Europe’s largest home improvement retailer Kingfisher gained 6 percent on the back of a forecast-beating 0.3 percent rise in annual profit.

Among other standout movers, Italy’s post office operator Poste Italiane rose 3.9 percent as its dividend targets pleased investors, but gambling group William Hill slumped 11 percent after warning of lower profits.

William Hill’s woes also weighed on the shares of rival bookmakers such as Ladbrokes and Paddy Power Betfair , which fell 2.4 percent and 1 percent respectively.

European travel and leisure shares fell for a second straight session, as the sector continued to feel the effects of Tuesday’s attacks on Brussels.

The STOXX Europe 600 Travel & Leisure Index fell 0.3 percent, adding to a 1.8 percent decline following the attacks which killed at least 30 people.

Some investors remained cautious about the near-term outlook, with the FTSEurofirst still down about 7 percent since the start of 2016 on concerns about a global economic slowdown.

“We are in a bear market. We pulled up a bit in February and March, but I think the most likely direction for now is down,” ACIES Asset Management hedge fund manager, Andreas Clenow, said.

Today’s European research round-up

ADVISORY- Reuters plans to replace intra-day European and UK stock market reports with a Live Markets blog on Eikon (see cpurl://apps.cp./cms/?pageId=livemarkets for site in development). In a real-time, multimedia format from 0600 London time through the 1630 closing bell, it will include the best of our market reporting, Stocks Buzz service, Eikon graphics, Reuters pictures, eye-catching research and market zeitgeist. Breaking news and dramatic market moves will continue to be alerted to all clients and we will continue to provide a short opening story and comprehensive closing reports.

If you have any thoughts, suggestions or feedback on this, please email

Mike Dolan, Markets Editor EMEA. (Editing by Louise Ireland and Keith Weir)

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