Miners, mixed earnings drag down European stocks (updated)

Mid Penn Bancorp

27/10/2021 09:47

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    * Commodities-linked stocks hit 
    * Deutsche Bank slides despite profit beat 
    * Traders await ECB meeting on Thursday

 (Adds comment, updates prices)
    By Anisha Sircar
    Oct 27 (Reuters) - European stocks slipped on Wednesday,
with miners leading the declines after concerns about Chinese
intervention hit metal prices, while mixed corporate earnings
reports kept investors on edge. 
    The pan-European STOXX 600  .STOXX  fell 0.2% but held just
below its record high hit in August. Miners  .SXPP  fell 1.4% as
Beijing's latest move to address skyrocketing prices hit coal
and metal prices.  IRONORE/   MET/L 
    Asian tech stocks slid on the back of a spike in short-term
U.S. Treasury yields and new regulatory concerns in China even
as a batch of upbeat earnings reports lifted Wall Street to
record highs on Tuesday.  MKTS/GLOB  
    Traders are now focused on the European Central Bank (ECB)
meeting on Thursday, where policymakers are expected to keep
interest rate unchanged and push back on market inflation
forecasts.  urn:newsml:reuters.com:*:nL4N2RH148
    "After such strong highs we have seen on indices, I'm not
surprised that we see a kind of breather today ahead of the ECB
meeting," said Roland Kaloyan, head of European equity strategy
at SocGen.
    "The ECB will remain accommodative, but again, you always
have the risk that any message or any word could be
misunderstood or misinterpreted by the market."
    Euro zone inflation expectations surged to a new seven-year
high on Tuesday, shooting past the ECB's target of 2% on the
back of soaring energy prices and supply chain crunches. That is
expected to put pressure on the central bank as it considers how
much support to provide the bloc's economy once its pandemic
bond-buying expires next March.  urn:newsml:reuters.com:*:nL1N2RM0IP
    However, the STOXX 600 is on track to end October with
gains, as stronger-than-expected quarterly results counter
concerns about inflation, global energy crunch and looming
central bank actions. 
    Profits for Europe Inc are expected to increase 52% in the
third quarter to 99.8 billion euros ($115.8 billion) from the
same quarter last year, latest Refinitiv I/B/E/S data showed, an
improvement from last week's 47.6% growth forecast.
    Still, Deutsche Bank  DBKGn.DE  slid 4.8% despite posting a
better-than-expected quarterly profit, while Sweden-listed
online gambling operator Kindred Group  KINDsdb.ST  slumped 9.4%
to the bottom of STOXX 600 after quarterly results.
 urn:newsml:reuters.com:*:nL8N2RN0QY urn:newsml:reuters.com:*:nFWN2RM1VE
    Among a few bright spots, electrical equipment maker
Schneider Electric  SCHN.PA  jumped 2.4% after it reported a
better-than-expected quarterly revenue growth.  urn:newsml:reuters.com:*:nL8N2RN1VA
    Germany's Puma  PUMG.DE  inched up 3% after hiking its 2021
sales outlook even as it cautioned that a lockdown in Vietnam,
port congestion and container shortages were hurting its supply
chain.  urn:newsml:reuters.com:*:nL8N2RN1RL
    Swiss software specialist Temenos  TEMN.S  surged 9.0% after
a report that buyout firm EQT AB  EQTAB.ST  was in the early
stages of considering a bid for the firm.  urn:newsml:reuters.com:*:nL4N2RM430

 (Reporting by Anisha Sircar in Bengaluru; Editing by Subhranshu
Sahu and Anil D'Silva)
 ((Anisha.Sircar@thomsonreuters.com;))