(MENAFN– ecpulse)
European shares opened mixed to lower on Thursday with investors seen avoiding strong bets following disappointing results from major companies.
- STOXX Europe 600 dropped 0.03 percent to 296.94
- Euro Stoxx 50 lost 0.06 percent to 2,680.14
Shares in Europe fell in early actions, weighed down by the technology sector after a spate of disappointing company reports, where Ericsson AB and SAP AG reported less-than-forecasts sales in the second quarter.
Ericsson, the largest maker of wireless-network equipment, said sales were at 55.3 billion kronor, missing the 56 billion kronor estimated by analysts as competition with Huawei Technologies Co. for contracts to build and service phone systems intensified.
- As of 03:13 ET, Telefonaktiebolaget LM Ericsson share lost 4.90 percent to 75.7000 SEK
SAP, German software giant, has reported a 3 percent drop in global software sales in second-quarter 2013, but overall revenue climbed 8 percent to 4.09 billion euros. The company said on Thursday it will trim its full-year sales forecast in the face of the "difficult macroeconomic environment" in Asia and Japan.
- As of 03:30 ET, SAP AG share fell 3.73 percent to 55.740 euro
Shares were also pressured by U.S. Federal Reserve Chairman Ben Bernanke’s comments made it clear that there was no predetermined timeline for reducing U.S. monetary stimulus.
In his semi-annual report to the U.S. House of Representatives` Financial Services Committee, Fed’s chairman Ben Bernanke said the central bank still expected to start scaling back its stimulus later in 2013, but left open the option of changing that plan if needed.
Bernanke will deliver his second day of semi-annual testimony before the Senate Banking Committee later on Thursday, while analysts said he is likely to stick to the theme laid out on Wednesday.
- France`s CAC 40 went up 0.09% to 3,875.54
- German DAX fell 0.31% to 8,229.43
- British FTSE 100 inched 0.19% up to 6,584.62
In other news, Greece`s parliament scraped through a vote that gives the green light for the country’s next disbursement of international aid. Out of 293 lawmakers present, 153 voted just after midnight to sack thousands more public sector workers in order to secure the next tranche of the 7 billion euros in aid.
Meanwhile, German Finance Minister Wolfgang Schaeuble, will offer Greece 100 million euros to promote economic growth, during his visit to Athens, in a move unlikely to appease protesters who resent his firm stance on austerity measures.
The Asian markets are trading in a cautious manner Thursday, with Chinese shares coming under pressure as the International Monetary Fund (IMF) warned of developing risks in China.
In its annual report on the Chinese economy, the IMF urged policy makers to push ahead with another round of "decisive measures" to avoid more shocks in the economy amid a wide range of concerns including weakening economic data, fears of a cash crush in the country`s interbank lending market.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.