European equities retreated in early trading on Thursday following some disappointing company updates, with Rolls-Royce slumping about 20 percent after issuing another profit warning.
The pan-European FTSEurofirst 300 index was down 0.7 percent at 1,484.74 points by 0811 GMT after closing 0.7 percent higher in the previous session.
Shares in Rolls-Royce were down 19.2 percent by 0808 GMT, the top decliner in the pan-European FTSEurofirst 300 index, after the British engine-maker downgraded its profit forecast for 2016, its fourth warning in just over a year, blaming sharply weaker demand for spares and services to existing aero-engines.
RWE also fell more than 4 percent after warning it would only barely reach its full-year net profit target. Persistent problems at its British business have piled pressure on Chief Executive Peter Terium to come up with a convincing turnaround plan.
According to Thomson Reuters StarMine data, 84 percent of companies in the STOXX Europe 600 index have announced third-quarter results so far, of which 51 percent have met or beaten analysts' forecasts. On the revenue front, only 47 percent companies have met or surpassed expectations.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.