As the earnings report from Inditex SA & Enel SpA have offset an increase in the US retail sales by the most in last 5 months, many of the European stocks have experienced decline. The biggest clothing retailer in the world, Inditex has tumbled by 2.6% as it reported its slowest profit growth in the last 5 quarters. On the other hand, the biggest utility in Italy, Enel declined to a figure that’s the lowest in the last 6 months as its net income went down by 79%. On the other hand, Prudential Plc. has increased to a 13-year high as the insurer has been able to increase its dividend for the last year.
The benchmark gauge of the European stocks, the Stoxx Europe 600 Index has tumbled by less than0.1% and is currently at 295.32. Around 60% of the shares listed in the gauge experience a decline today. Incidentally, the gauge had seen its highest value on 8th March since June, 2008 after economic reports from both US and China increased investors’ confidence on the possibility of a global economic recovery.
Daniel Morris, who works as the Market Strategist of JPMorgan Chase & Co., does not expect a substantial correction, at least for the time being. Morris added further that the fundamental support for the European equities is still good enough and for the rest of 2013, he will be looking for the appreciation that these equities experience.
Commerzbank AG shares have tumbled by 9.7% and each share is now priced at 1.26 Euros. This is the bank’s biggest decrease in last 15 months as the 2nd biggest lender of Germany announced a new phase of share sale. On the other hand, Direct Line Insurance Group has declined by 2.5% as the Royal Bank of Scotland Group has decided to sell a stake in it. This will help Royal Bank of Scotland Group raise 507 million Pounds. Incidentally, Direct Line Insurance Group is the biggest motor and home insurer in UK.
ASM International NV went down by 10% and this marks the company’s biggest drop since November, 2008. Each of its shares is priced at 27.85 Euros now. Royal Imtech NV went ahead by 4.6%, taking each share of it to 10.20 Euros. The company has reached a settlement with Adventure World Warsaw out of court and this news helped its shares.