Brexit Anxieties Drive European Markets Lower, Swiss Banks in Focus

Sarla Buch
16 Jun, 2016
New York City

European markets turned lower on the growing anxieties as the EU membership referendum date approached near in the U.K. Banks led the decliners after Swiss central banks suggested UBS and Credit Suisse may need to raise more capital. Mulberry net swung to profit. Poundland profit tumbled 94%.

[R]4:00 PM Frankfurt – European markets turned lower on the growing anxieties as the EU membership referendum date approached near in the U.K. Banks led the decliners after Swiss central banks suggested UBS and Credit Suisse may need to raise more capital. Mulberry net swung to profit. Poundland profit tumbled 94% but revenues soared 19%. WS Atkins net surged 21%.[/R]

European markets traded lower on the growing anxieties linked to the U.K. referendum to stay in the European Union.

Banks led the decliners in the region after the Swiss National Bank said that UBS and Credit Suisse may need as much as $10 billion each to meet new leverage requirements.

In London trading, FTSE 100 index slipped 48.08 or 0.8% to 5,918.72 and in Frankfurt the DAX index fell 66.50 or 0.6% to 9,539.87.

In Paris, CAC 40 index decreased 21.95 or 0.5% to 4,149.63.

Charles Stanley Group Plc dropped 3.5% to 301 pence after the investment company said revenues in the year ending in March slumped 5.4% from a year ago to £141.6 million.

Net loss in the year narrowed from a year ago to £0.3 million compared to £6.1 million and diluted loss per share decreased to 0.61 pence from 13.46 pence in the same period a year ago.

Darty Plc rose 0.2% to 168.50 pence after the multi-channel electrical retailer reported in the year ending in April jumped 4.1% from a year ago to £3.66 billion.

Comparable store sales in the year advanced 3.9%.

Net profit in the year plunged 73.2% from a year ago to £3.7 million compared to £13.8 million and diluted earnings per share slumped to 0.7 pence from 2.7 pence in the same period a year ago.

Mulberry Group Plc stock traded flat at 1,025 pence after the own brand handbag maker said total revenues in the year ending in March jumped 5% from a year ago to £155.9 million.

Comparable store sales in the year increased 4% and total retail sales soared 9%.

Net in the year swung to profit from a year ago to £2.7 million compared to a loss of £1.4 million and diluted earnings per share swung to 4.5 pence from diluted loss per share of 2.3 pence in the same period a year ago.

Poundland Group Plc jumped 3.7% to 207.50 pence after the U.K.-based discount retailer stated total sales in the year ending on March 27 soared 18.7% from a year ago to £1.33 billion.

Comparable store sales in the year slumped 3.9%.

Net profit in the year tumbled 94.4% from a year ago to £1.6 million compared to £28.4 million and diluted earnings per share declined to 0.61 pence from 11.34 pence in the same period a year ago.

WS Atkins Plc soared 5.2% to 1,265 pence after the U.K.-based engineering consultancy services provider reported revenues in the year ending in March advanced 6% from a year ago to £1.86 billion.

Net profit in the year surged 20.7% from a year ago to £103.4 million compared to £85.7 million and diluted loss per share jumped to 103 pence from 85.4 pence in the same period a year ago.

Separately, today the company secured consultancy service contract for three-runway system at Hong Kong International Airport to managed 102 million passengers, 8.9 million tons of cargo and 607,000 aircraft movements per year by 2030.