(MENAFN– ecpulse)
European stocks were trading lower early hours Wednesday as Syria tension weighs again and fears of weak earnings hit the market after Ryanair warned of weak results.
Ryanair shares slumped sharply after the company said profit is more likely to be at the lower end of the forecast range between 570 million euros and 600 million euros as bookings drop pressured by the heat wave in Europe.
Europe’s largest discount airline said that its measure of fair prices, referenced to as yield, continued to weaken as the drop noticed into September, October and November profits will be at the lower end of the range.
- Ryanair shares slumped the most in nearly two years now lower by almost 14% at 5.841 euro
The Middle East tension is back to pressure the market lower and stocks dipped lower again at the end of the session yesterday Tuesday after House Speaker John Boehner said he supports President Obama’s call for military action against Syria.
STOXX 600 ended lower on Tuesday following the strongest rally in nearly eight weeks Monday. European stocks are trading lower Wednesday ahead of key rate decisions and reignited Syria tension.
- STOXX 600 is trading lower by 0.29% at 300.91
- STOXX 50 trading lower by 0.46% at 2740.75
Positive Services PMI data from Europe did not much help offset the tension as the focus is now again on the possible Syria military Strike. Spain, France and Germany reported better than expected services data opposed to weaker than expected data from Italy and aggregate euro area sector, which still remained in expansion in August.
- DAX off by 0.17% at 8167.34
- CAC 40 down by 0.53% at 3953.47
- IBEX 35 trading lower by 0.36% at 8414.90
- FTSE MIB down the most by 1.31% at 16718.25
UK reported a record expansion in Services PMI in August as the expansion accelerated opposed than expected slight slowdown to a record 60.5 further confirming the broad-based recovery in the kingdom. The data further confirm the expectations for a steady monetary decision from the BoE when then announce the decision tomorrow on Thursday.
- FTSE 100 is trading lower still by 0.39% at 64443.14
The tension is evident in the market and eyes remain focused on Syria developments and as well as central banks ahead of monetary policy decisions. The Fed’s Beige Book later in the session will offer further clues into the timing of Fed tapering that will also have its impact on the market ahead of BoE and ECB rate decisions tomorrow.
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