Post earnings releases from some big names in the US and mixed economic data European indices trailed off, finishing near lows on the session. Higher labor costs in the States perhaps worried investors with the reading increasing chances of 4 rate hikes this year rather than 3. Apart from Sweden most indices worked lower on the day with Italy flat. Volume ramped up as the market fell before moving back to more normal levels. On the day though volume was up 34% vs the recent month’s turnover. Sector-wise Financials and Tech names finished up while Healthcare, Telcos, and Chemicals saw losses of over a percent.
Software provider Dassault Systems rose 6.6% with Goldman seeing strong license performance in the 4Q which they see continuing in FY18. A couple brokers noted the firm’s history of conservative guidance adding their view of currency headwinds could lead to an upgrade later in the year.
Daimler skidded 2.2% lower on mixed 4Q readings and views on ‘slight” gains in revenues and unit sales. The firm noted FY18 ebit levels in the “magnitude of the previous year”. The firm seems more open to the idea of spinning off their truck unit.
Weighing further on the healthcare space Coloplast fell 3.8% post 1Q readings a hair light of estimates. FY rev estimates were kept intact along with ebit margin as the company announced a new DKK1B stock repurchase. Several brokers pointed to continued weakness in their wound & skin care unit.
While the sector lagged on Shell today both Petroleum Geo-Services +6.5% and Lundin Petroleum +2.5% bubbled higher on stronger-than-expected 4Q readings.
From earlier: Novo Nordisk -7.3%, Roche -2.8%, Unilever +.7%, Vodafone -4.5%, RD Shell -2.2%, Daimler -2.2%, TDC -8.1%, Modern Times Group +7.4%.
Economic releases are scant Friday with UK Construction PMI expected along with Italian CPI. Earnings though are heavy with AstraZeneca, DB, Husqvarna, Philips Lighting, TDC, and many others expected.