European stocks move lower on earnings; Ubm up by 12%
Stocks in Europe moved lower on Wednesday morning with global sentiment curbed by a sharp reversal for equities on Wall Street in the previous session.
The pan-European Stoxx 600 was off by 0.26 percent with most sectors trading in negative territory.
Media stocks were the worst-performing sector in mid-morning deals dragged down by Informa and Pearson. Banking stocks were also among the top losers pausing from previous gains on earnings. On the other hand, technology stocks were making some gains, up by 0.48 percent. The sector was pushed higher by ASML, which rose by nearly 5 percent in mid-morning deals, after reporting better-than-expected results.
Looking across the European benchmark, Ubm led the gains, up by 12 percent. This followed news that the British firm Informa has decided to buy the organizer of the event for £4 billion ($5.2 billion), Reuters reported. Informa dropped 8 percent and tumbled to the bottom of the index.
Pearson shares sank more than 5 percent after the company reported a 2 percent fall in revenue in the first nine months of its fiscal year.
Burberry also struggled on Wednesday morning, down by 7 percent, after reporting lower sales in its third quarter.
News that Interserve is being monitored by the U.K. government on concerns over its financial health is also putting some pressure on the construction sector, following the collapse of Carillion.
Meanwhile, on Tuesday the Swiss food group Nestle agreed to sell its U.S. business to Ferrero for $2.8 billion.
Asian markets closed lower after Wall Street reversed from record highs on Tuesday. The Dow hit the 26,000 benchmark — a few days after breaking the 25,000 line. However, it also recorded its biggest one-day reversal in nearly a year.
In terms of data, there will be inflation numbers out in the eurozone at 10 a.m. London time and the U.S. Federal Reserve Beige Book will be released at 7 p.m. London time.
Meanwhile, Jens Weidmann, the German representative to the European Central Bank said in an interview published Wednesday that it would be "appropriate" to stop bond purchases, the newspaper Frankfurter Allgemeine Zeitung reported.