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European shares slip from 20-month highs, Apple suppliers slip
May 3, 2017 / 9:32 AM / 7 months ago

European shares slip from 20-month highs, Apple suppliers slip

* Apple suppliers fall on weak iPhone sales

* Novo Nordisk jumps on profit beat

* Profit outlook rosier for Fresenius

* Hugo Boss drops as online sales disappoint

* Miners at four-month low (ADVISORY- Follow European and UK stock markets in real time on the Reuters Live Markets blog on Eikon, see cpurl://apps.cp./cms/?pageId=livemarkets)

By Helen Reid

LONDON, May 3 (Reuters) - European shares slipped slightly from the 20-month highs they hit in the previous session, as investors locked in some profits following some underwhelming company results.

Europe’s STOXX 600 index was down 0.14 percent by 0925 GMT. France’s CAC 40 and Germany’s DAX fell 0.3 and 0.2 percent, retreating from their highs.

Shares in several Apple suppliers fell after the smartphone giant reported a surprise dip in sales of its flagship iPhone.

Dialog Semiconductor shares slid 2.9 percent at the open. They had plummeted 14 percent in April on fears over Apple bringing some of its components in-house.

“Dialog has been trying to diversify for a number of years to different sources, but unfortunately if your key relationship is with Apple and that’s because you have got great products, there’s risk and opportunity very closely aligned in that,” said Neil Campling, technology analyst at Northern Trust.

Peers AMS and STMicro also fell 2 and 1.7 percent respectively.

Shares in German luxury retailer Hugo Boss dropped 6 percent, set for their worst day in nearly six months after online sales fell 27 percent due to fewer visitors to its website.

German bluechip automakers Daimler and BMW were also on the backfoot after a disappointing set of April auto sales in the U.S. Daimler shares fell about 1 percent.

Gains among healthcare stocks supported the index.

Fresenius touched a record high, up 3.3 percent, after it raised its 2017 profit forecast after demand for its generic infusion drugs boosted first-quarter income 28 percent.

“We do not believe investors were anticipating another guidance raise and will be relieved by the Kabi strength,” said UBS analysts, referring to the company’s infusion segment.

Danish drugmaker Novo Nordisk jumped to the top of the STOXX 600 table, up 7 percent after it beat estimates for first-quarter profit and nudged up its full-year outlook.

Elsewhere, underwhelming results weighed on Finland’s Nokian Tyres, down 4.8 percent after it missed estimates for operating profit.

Temporary power supplier Aggreko fell 3.5 percent after Morgan Stanley downgraded the stock, saying the company’s diversification into new fuel types and technologies was ‘unproven’.

Elsewhere, Centamin fell 4.4 percent after posting a 28 percent fall in first-quarter pretax profit. It dragged Europe’s miners down 1.7 percent to a four-month low.

First-quarter earnings are expected to increase 10.5 percent from the first quarter of 2016, or 6.2 percent excluding the energy sector, Thomson Reuters data showed.

Of 111 companies having reported earnings so far, 70.3 percent exceeded analyst estimates; above the 49.5 percent of beats in a typical quarter. (Reporting by Helen Reid, Editing by Vikram Subhedar)

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