Markets

European markets lower on earnings; Adidas up 7%; UBS down 2.6%

The pan-European Stoxx 600 was 0.86 percent lower during early morning deals with all sectors and major bourses in negative territory.

Technology stocks were among the worst performers on Friday, on the back of earnings news. In the U.S., investors were unsettled by a sudden drop in technology and transport shares on Thursday. Amazon – up almost 40 percent this year – posted a slump in profits and slipped 3 percent after the closing bell. Back in Europe, all companies in the sector were trading more than 1 percent lower shortly after the opening bell. Dialog Semiconductor led the losses after Credit Suisse and Deutsche Bank both cut their target price for the firm. Its shares were down more than 2.2 percent.

Switzerland’s largest bank, UBS, posted better-than-expected profits in the second quarter of the year on Friday. The lender reported 1.174 billion Swiss francs ($1.21 billion) in net profits, up 14 percent on a year earlier. Its shares slipped over 2.6 percent amid a cautious outlook for the firm.

U.K. lender Barclays reported a net loss of £1.21 billion ($1.58 billion) for the first half of 2017 on Friday. The bank attributed its results to a fall in sterling, a charge from the mis-selling of payment protection insurance and a loss from the sale of its Africa unit. Its shares were 1.5 percent higher after claiming that restructuring had now been completed.

Elsewhere, Adidas surged to the top of the benchmark after reporting an improved full-year outlook in its second-quarter earnings report late Thursday. The German sporting goods firm said it anticipated currency-neutral sales to grow between 17 and 19 percent in 2017. It had previously estimated a range between 12 and 14 percent. Shares were more than 7 percent higher in early morning deals.

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