MILAN: European equities declined on Thursday as London stocks were sapped after Glencore scrapped its dividend and oil stocks slid, while investors kept a close eye on Washington for progress on US stimulus. The pan-European STOXX 600 index closed 0.7% lower, with London's FTSE 100 falling 1.3% and the German DAX down 0.5%.
Europe's mining index, which rallied earlier this week, shed 2.5% after Glencore became the first major mining company to scrap its dividend and said that it would prioritise cutting debt. Its shares slumped 8.1%, while energy majors BP, Royal Dutch Shell and Total fell between 2% and 3.8% after strong gains on Wednesday.
London's exporter-heavy FTSE 100 also took a hit from a stronger pound after the Bank of England (BoE) saw no immediate case to cut interest rates below zero even as it said the economy would take longer to recover from its Coivd slump than it previously forecast. German stocks posted relatively small losses as engineering group Siemens rose 1.6% after forecasting a modest improvement in orders and revenue in the months ahead.
Adidas gained 1.9% as it expects a rebound in profits in the third quarter. Among the fallers, French insurer AXA slid 3.5% after it dropped its 2020 earnings target and said it would not make additional payouts to shareholders in the fourth quarter.
UniCredit was down 3.9% as it vowed to stay out of a possible merger wave in Italy after reporting higher than forecast quarterly results. Lufthansa slipped 1.2% after saying it did not expect air travel demand to return to pre-crisis levels before 2024. Of the 65% of the STOXX 600 companies that have reported results so far, nearly 60% have exceeded dramatically lowered estimates, Refinitiv Eikon data shows.
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