EURO STOXX50 Drop As Carrefour, WPP results get frosty reception – Market cautious
European shares slid on Thursday as a flurry of uninspiring earnings updates from retailer Carrefour and advertiser WPP kept the mood downbeat, while broader jitters over tightening monetary policy spilled over into March.
The pan-European STOXX 50 index was down 1.06 percent in early deals, while Germany’s DAX fell 0.7 percent Britain’s FTSE100 felt the weight of Brexit uncertainty with a 0.3 percent loss.
Results were squarely in focus with shares in French supermarket Carrefour dropping 6 percent after the group cut its dividend amid a cautious outlook for 2018 profitability.
Another firm which has struggled in a digital age was advertiser WPP, whose shares dropped 11.7 percent after it said that it would simplify its structure after posting its worst performance since the financial crisis as consumer goods firms cut their spending on advertising.
On the positive side, shares in beer giant Anheuser-Busch InBev jumped 5.7 percent after its fourth-quarter profit beat expectations than expected thanks to a rebound in Brazil and savings from its 2016 purchase of SABMiller
On the technical charts, EURO STOXX50 in the negative zone and below all the moving averages (9 day, 20 day, 50 day, 100 day and 200 day). The RSI is at 42.40 and MACD is above the signal line.
Sell stop at 3399, Take profit at 3380, Stop loss at 3410