27 October 2018, News Wires — European shares were on course for their worst month since 2015 on Friday after a spreading global sell-off hit regional equity markets and missed results expectations sapped risk appetite.
The leading index of euro zone stocks fell 1.4 percent with Germany’s DAX down 0.9 percent and France’s CAC 40 down 1.3 percent.
The pan-European STOXX 600 lost 1.2 percent and is down about 8 percent so far in October, a size of fall not seen since August 2015.
Overall the third-quarter earnings season has been marred by rolling sell-offs across global markets.
Wary analysts were downgrading their earnings estimates for the MSCI Europe index at their fastest pace since Feb 2016 and disappointments over results caused sharp share falls.
Shares in French auto parts maker Valeo sank more than 21 percent after its second profit warning in three months flagged disruption from tougher European emissions tests and a sharp sales downturn in China.
Peer Faurecia also tumbled 5.7 percent after it agreed to buy Japanese car navigation system maker Clarion from Hitachi.
The autos & parts sector index fell 1.6 percent.
Swedish appliances maker Electrolux fell 4.4 percent after it trimmed its market demand expectations and forecast higher costs due to increasing raw material prices and tariffs.
Shares in French household appliances maker SEB fell 11 percent for their worst day since 2012 after the company cut revenue guidance due to a “difficult environment” with FX and raw material costs rising.
Also posting its worst ever daily fall after disappointing results was Spanish sausage casings producer Viscofan. Its shares fell 19.4 percent after it warned it would miss full-year profit guidance.
Kepler Cheuvreux analysts downgraded the stock to “reduce” from “hold”.
Altran shares were a bright spot, surging 15.3 percent after the engineering and tech consultancy reported strong third-quarter results thanks to good growth in Germany and the Americas.