European Markets Declined On Weak Corporate Financial Results

(RTTNews) - The European markets ended Thursday's session in the red. Investor sentiment took a hit from some weaker than expected corporate financial reports. Financial stocks were under pressure due to news out of Deutsche Bank and Barclays. A pull back in the prices of precious metals also weighed on the mining sector. The weak opening of the U.S. equity markets further soured the mood among investors.

Investors also had their first opportunity to react to yesterday's monetary policy announcement from the Federal Reserve, which suggested a December interest rate hike remains on the table.

Many analysts pointed to the fact that the Fed statement removed a reference to global economic and financial developments potentially restraining economic activity.

The Fed's explicit indication that it will assess progress towards its objectives in determining whether it will be appropriate to raise rate at its "next meeting" was also highlighted.

The Euro Stoxx 50 index of eurozone bluechip stocks decreased 0.23 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.28 percent.

The DAX of Germany dropped 0.29 percent and the CAC 40 of France fell 0.10 percent. The FTSE of the U.K. declined 0.65 percent, but the SMI of Switzerland finished higher by 0.28 percent.

In Frankfurt, Deutsche Bank tumbled 6.88 percent. After posting a steep third-quarter loss, the country's largest lender said it would suspend dividends for two years as part of efforts to improve returns and capital efficiency. Also, as part of its Strategy 2020, the lender plans to reduce its work force by about 9,000 full-time equivalent positions plus around 6,000 external contractor positions in its Global Technology & Operations infrastructure function.

Mail and logistics group Deutsche Post DHL fell 2.32 percent, after lowering its 2015 EBIT guidance for the second time this year.

Lufthansa sank 8.26 percent. The company's net profit for the third quarter climbed 41.5 percent to 794 million euros.

In Paris, Sanofi decreased 2.48 percent. The company said its bottom line climbed to Euro1.63 billion, or Euro1.25 per share. This was higher than Euro1.19 billion, or Euro0.95 per share, in last year's third quarter.

Air France-KLM weakened by 4.97 percent. The company's third-quarter net result group share surged to 480 million euros from 86 million euros last year.

In London, Barclays dropped 6.28 percent after reporting a fall in third-quarter profits and setting aside £560m for more customer refunds and litigation.

Royal Dutch Shell declined 1.46 percent, after reporting a loss for the third quarter.

Smith & Nephew sank 4.70 percent, after its third-quarter consolidated revenue totaled $1.105 billion, down 4 percent from last year's $1.148 billion.

Eurozone economic confidence improved unexpectedly in October, though slightly, survey data from European Commission showed Thursday. The economic sentiment rose to 105.9 in October from 105.6 in the previous month. Economists had expected the index to fall to 105.1.

A measure of future economic activity in Eurozone remained unchanged in September, survey figures from the Conference Board showed Wednesday. The Conference Board's Leading Economic Index, or LEI, for the euro area showed no variations in September, following a 0.2 percent increase in August.

Germany's consumer prices increase in October after remaining flat in the previous month, preliminary estimates from the Destatis showed Thursday. The consumer price index rose 0.3 percent annually following stagnation in September. Economists had forecast 0.2 percent increase. The latest gain was the fastest since June, when prices climbed at the same pace.

German unemployment declined more-than-expected in October, extending further evidence of the resilience of businesses in the biggest Eurozone economy, amid the slowdown in emerging markets. The number of unemployed dropped a seasonally adjusted 5,000 to 2.788 million, the Federal Labor Agency said on Thursday. Economists were looking for a decline of 4,000.

Germany's unemployment rate held steady in September, figures from Destatis showed Thursday. The jobless rate came in at an adjusted 4.5 percent in September, the same rate as in the previous month. In the corresponding month last year, the rate was 5.0 percent.

U.K. house price inflation accelerated unexpectedly in October to the highest level in five months, the Nationwide Building Society said Thursday. House prices climbed 3.9 percent year-over-year in October, slightly faster than September's 3.8 percent rise. Economists had forecast prices to remain stable at 3.8 percent.

UK loan approvals for house purchase unexpectedly dropped in September for the first time in four months from its highest level in two-and-a-half years, figures from the Bank of England showed Thursday.

The number of loans approved for house purchase totaled 68,874 in September, which was lower than August's 70,664, revised from 71,030. Economists had forecast 72,400 approvals. The August figure was the highest since January 2014.

Growth in U.S. economic activity saw a notable slowdown in the third quarter, according to a report released by the Commerce Department on Thursday. The report said real gross domestic product rose by 1.5 percent in the third quarter compared to the 3.9 percent jump seen in the second quarter. Economists had expected a 1.7 percent increase.

First-time claims for U.S. unemployment benefits saw a slight increase in the week ended October 24th, according to a report released by the Labor Department on Thursday. The report said initial jobless claims inched up to 260,000, an increase of 1,000 from the previous week's unrevised level of 259,000. Economists had expected initial jobless claims to climb to 265,000.