European stocks ended the day mixed after two weeks of growth, as investors monitor the situation in Ukraine and the Middle East, and evaluate the financial performance of companies.
It is worth noting that on Sunday the fighting in Gaza subsided a bit after the Islamic militants of Hamas said they support a 24-hour humanitarian truce in the light of the Muslim holiday.
Meanwhile, member states of the European Union agreed to impose economic sanctions against Russia because of its involvement in fomenting the crisis in Ukraine. Moscow has responded to the sanctions, warning that they will prevent cooperation on global security.
Investors are also watching corporate reporting. Of companies in the Stoxx 600, which presented the results of this season, 57 percent exceeded estimates for earnings and 51 percent better than expected sales, according to data compiled by Bloomberg.
As for today's economic reports that little influenced by the U.S. data, which showed that after three consecutive months of strong growth unfinished Home Sales slowed slightly in June. National Association of Realtors (NAR) reported that the index of pending home sales (PHSI), predictive indicator based on signed contracts, dropped 1.1 percent to 102.7 in June from 103.8 in May and was 7.3 percent lower than in June 2013 (110.8). Despite the decline, the index exceeds the level of 100, which is considered a middle-contract activity, the second consecutive month.
Lawrence Yun, chief economist of NAR, said that the housing market is stabilizing, but the current problems hinder the full potential sales. "The activity is significantly higher than at the beginning of this year, as prices have become more moderate, and inventory levels have improved," he said.
Meanwhile, adding that market participants gradually shift focus to other important statistical reports on the U.S. economy - preliminary data on GDP for the second quarter of 2014, the July report on unemployment and the index of business activity in the manufacturing sector. According to experts, the number of jobs in the U.S. economy in July increased by 228 thousand after increasing by 262 million in June, unemployment remained unchanged at 6.1%. U.S. GDP, according to the consensus of experts in April-June 2014 increased by 3%, after declining by 2.9% in the previous quarter.
National benchmark indexes fell in 15 of the 18 western European markets.
FTSE 100 6,788.07 -3.48 -0.05% CAC 40 4,344.77 +14.22 +0.33% DAX 9,598.17 -45.84 -0.48%
Value of the shares of Irish airline Ryanair Holdings Plc jumped 3.0%. Europe's largest airline discounter increased its net profit in the first fiscal quarter by 152% due to a significant increase in demand for its services during the Easter holidays, and raised its forecast for the entire fingoda and announced the payment of the special dividend.
Paper Reckitt Benckiser Group PLC rose 3.0%. British chemical company announced the separation of the pharmaceutical division.
The cost of the investment fund shares Aberdeen Asset Management Plc fell 5.3% after it became aware of reducing the amount of assets under management fund by 0.6 percent - up to 322.5 billion pounds.
Cost of TNT Express NV fell 5.6 percent. Dutch delivery company reported that second-quarter profit amounted to 1.66 billion euros, compared with a forecast of 1.69 billion euros.
Wincor Nixdorf shares fell 4.7 percent after reporting third-quarter revenue reached 573 million euros ($ 770 million), compared with estimates at 600 million euros.
U.S. stock futures rose on merger activity, before a Federal Reserve policy decision this week and reports that will provide more clues to the strength of the world's largest economy.
Global markets:
Nikkei 15,529.4 +71.53 +0.46%
Hang Seng 24,428.63 +212.62 +0.88%
Shanghai Composite 2,177.95 +51.33 +2.41%
FTSE 6,796.15 +4.60 +0.07%
CAC 4,343.54 +12.99 +0.30%
DAX 9,630.08 -13.93 -0.14%
Crude oil $101.34 (-0.72%)
Gold $1304.80 (+0.11%)
(company / ticker / price / change, % / volume)
United Technologies Corp | UTX | 108.96 | +0.07% | 2.0K |
American Express Co | AXP | 92.10 | +0.18% | 4.4K |
Exxon Mobil Corp | XOM | 103.41 | +0.22% | 0.1K |
Boeing Co | BA | 123.50 | +0.24% | 0.1K |
International Business Machines Co... | IBM | 194.40 | 0.00% | 0.2K |
Procter & Gamble Co | PG | 79.55 | -0.01% | 6.0K |
E. I. du Pont de Nemours and Co | DD | 64.90 | -0.05% | 0.8K |
3M Co | MMM | 145.03 | -0.06% | 0.1K |
Verizon Communications Inc | VZ | 51.25 | -0.06% | 5.5K |
Johnson & Johnson | JNJ | 102.04 | -0.07% | 0.2K |
AT&T Inc | T | 35.50 | -0.11% | 0.6K |
Nike | NKE | 77.63 | -0.12% | 0.1K |
McDonald's Corp | MCD | 95.60 | -0.13% | 13.1K |
Microsoft Corp | MSFT | 44.43 | -0.16% | 3.5K |
Goldman Sachs | GS | 175.09 | -0.18% | 7.2K |
General Electric Co | GE | 25.74 | -0.19% | 3.9K |
Wal-Mart Stores Inc | WMT | 75.73 | -0.32% | 3.6K |
Visa | V | 214.07 | -0.33% | 0.1K |
Intel Corp | INTC | 34.11 | -0.41% | 5.9K |
Chevron Corp | CVX | 133.00 | -0.43% | 0.4K |
The Coca-Cola Co | KO | 40.82 | -0.44% | 1.3K |
JPMorgan Chase and Co | JPM | 58.71 | -0.51% | 0.9K |
Pfizer Inc | PFE | 30.02 | -0.56% | 8.6K |
Travelers Companies Inc | TRV | 91.54 | -0.61% | 0.7K |
Cisco Systems Inc | CSCO | 25.80 | -0.65% | 14.2K |
Upgrades:
Downgrades:
Cisco Systems (CSCO) downgraded to Sector Perform from Outperform at Pacific Crest
Pfizer (PFE) downgraded to Mkt Perform from Outperform at BMO Capital Mkts
Other:
European stocks were little changed, following a two-week advance, as investors weighed company earnings and awaited data on American services and home sales. U.S. index futures were little changed, while Asian shares rose.
Preliminary data at 9:45 a.m. Washington time may show the Markit Economics purchasing managers' index for the services industry fell to 59.8 in July from 61 in the prior month, according to economists surveyed by Bloomberg. A separate report at 10 a.m. from the National Association of Realtors may show a pending home-sales index climbed 0.5 percent in June following a 6.1 percent gain in May.
Goldman Sachs Group Inc. cut its rating on stocks to neutral, the equivalent of hold, for the next three months, saying they are at risk of a brief selloff, according to a quarterly strategy report July 25. The bank also lowered corporate credit to underweight and predicted that U.S. government bond yields will increase.
Aberdeen lost 3.1 percent to 445.1 pence. Europe's biggest publicly traded money manager said assets under management fell 0.6 percent to 322.5 billion pounds ($547.4 billion) in the quarter ended June 30 from the prior three months.
Ryanair rose 4 percent to 7.12 euros. Europe's biggest discount carrier said profit after tax will probably be 620 million euros to 650 million euros for the year through March 2015, up from a previous forecast of 580 million euros to 620 million euros. The Dublin-based airline also said profit after tax for the three months ended June 30 more than doubled to 197 million euros.
Reckitt Benckiser climbed 2.8 percent to 5,210 pence. The spinoff will occur in the next year and will be a U.K.-listed company. Slough, England-based Reckitt Benckiser also reported that sales in the second quarter climbed 4 percent, excluding the pharmaceutical business. That matched analysts' estimates.
FTSE 100 6,801.42 +9.87 +0.15%
CAC 40 4,346.1 +15.55 +0.36%
DAX 9,633.36 -10.65 -0.11%
Asian stocks rose, with the regional benchmark index extending a six-year high, as Chinese shares traded in Hong Kong headed for a bull market amid optimism government stimulus is boosting economic growth.
HANG SENG 24,441.61 +225.60 +0.93%
S&P/ASX 200 5,577.4 -6.10 -0.11%
TOPIX 1,286.07 +4.72 +0.37%
SHANGHAI COMP 2,177.95 +51.33 +2.41%
Bank of Communications Co. soared 4.9 percent in Hong Kong on a report the lender wants to sell more stakes to private investors.
Hitachi Chemical Co. soared 9.5 percent in Tokyo after announcing job cuts and reporting a quarterly profit.
Resona Holdings Inc. jumped 5.4 percent after the Japanese bank said it would buy back preferred shares to repay public funds.
(index / closing price / change items /% change)
Nikkei 225 15,457.87 +173.45 +1.13%
Hang Seng 24,216.01 +74.51 +0.31%
Shanghai Composite 2,126.61 +21.55 +1.02%
FTSE 100 6,791.55 -29.91 -0.44%
CAC 40 4,330.55 -80.10 -1.82%
Xetra DAX 9,644.01 -150.05 -1.53%
S&P 500 1,978.34 -9.64 -0.48%
NASDAQ 4,449.56 -22.54 -0.50%
Dow Jones 16,960.57 -123.23 -0.72%