Europe, Asia Decline on Profit Outlook

123jump.com Staff
11 Nov, 2008
New York City

Stocks in Asia closed lower and European markets declined after profit outlook at companies weakened. In Japan, Citizen Holding and Seiko sharply cut their annual earnings outlook on weak international sales. In Europe insurers, banks fell. Julius Baer, Swiss Life, Aegon, ING, Allianz declined.

[R]9:10AM New York – Market in Europe and Asia declined on profit worries and a drop in commodities prices.[/R]

Asian markets closed lower and European markets fell sharply on declining profit environment. Shippers, resource and mining companies and banks in Australia, Japan and China trading fell.

Citizen Holding and Seiko fell 10% after they lowered annual earnings outlook on expectations of wean international sales. Macquarie Bank dropped 10% and Wesfarmers fell after business sentiment index in Australia dropped to the lowest level in nearly two decades.

In European trading insurers, banks, home builders and asset managers fell.

UK based Vodafone profit fell 35% and power holding company in Germany earning fell 22%. Julius Baer reported a net outflow of assets under management and UK based home builder Taylor Wimpey reported new home orders plunged 40%.

Allianz SE declined 6% to 61.55 euros, Swiss Life Holding dropped 8% Sfr 109 and Axa dropped 5.7% to €15.40, ING declined 4% to €8.26 and Aegon fell 6% to €4.07.

Erste Bank, the largest bank in Austria is planning to raise 2.7 billion euros through the sale of participation certificates. Intesa Sanpaolo SpA tird quarter profit declined 54% to 673 million euros and dropped its dividend.

Vodafone Group Plc the global telecommunication carrier said first-half sales climbed 17% to £19.9 billion. Net profit in the period fell 35% to £2.14 billion or 4.02 pence per diluted share compared to net profit of £3.29 billion or 6.19 pence per share, a year earlier.

RWE AG, a management company of the RWE Group said third quarter revenues increased 14% to €34.5 billion from €30.3 billion a year earlier. Net profit in the quarter decreased 22% to €2.2 billion compared to net profit of €2.8 billion, a year earlier.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 272.13 or 3.00% to 8,809.30, Hang Seng index in Hong Kong decreased 703.73 or 4.77% closed to 14,040.90 CSI 300 index in China lower 20.30 or 1.13% closed to 1,781.36. ASX 200 index in Australia decreased 146.90 or 3.58% to close 3,960.90. The KL Composite index in Malaysia lower 9.64 or 1.07% closed to 894.60.

The Kospi Index in South Korea decreased 23.73 or 2.06% to close at 1,128.73. SET index in Thailand closed lower 14.13 or 3.10% to 442.31 and JSE Index in Indonesia decreased 4.12 or 0.31% to 1,336.56. The Sensex index in India decreased 696.47 or 6.61% closed to 9,839.69.

Europe Markets Review

In London FTSE 100 Index traded lower 77.57 or 1.76% to 4,326.35, in Paris CAC 40 Index decreased 76.62 or 2.19% to 3,429.13 and in Frankfurt DAX index traded lower 105.05 or 2.09% to 4,920.48. In Zurich trading SMI decreased 170.26 or 2.80% to 5,920.36.