European Stocks Close Lower As Investors React To Earnings, Economic Data

European stocks closed lower on Thursday with investors digesting a slew of earnings updates and economic data from Europe and the U.S.

Although several companies reported fairly strong quarterly earnings, weak updates and revenue guidance from a few top notch European and U.S. companies fell short of expectations, rendering the mood cautious for much of the day's trading session.

Data showing a spike in U.S. personal consumption expenditures price index raised concerns the Fed might hold interest rates higher for a longer period.

The pan European Stoxx 600 ended down by 0.64%. The U.K.'s FTSE 100 climbed 0.48%, while Germany's DAX and France's CAC 40 lost 0.95% and 0.93%, respectively. Switzerland's SMI shed 0.97%.

Among other markets in Europe, Austria, Belgium, Denmark, Finland, Greece, Netherlands, Poland, Spain and Sweden ended with sharp to moderate losses.

Norway, Portugal and Russia closed weak, while Turkiye ended flat.

In the UK market, Anglo American Plc shares soared over 16% after mining giant BHP Group proposed a takeover of the rival in a deal that seeks to create world's biggest copper miner with around 10 percent of global output.

Barclays Group climbed about 6.75% after the lender reported a smaller-than-expected drop in first-quarter profit.

Unilever shares gained 5.7% as the consumer goods giant beat first-quarter sales forecasts and kept its full-year guidance for underlying sales growth within its multi-year range of 3-5%.

AstraZeneca rallied nearly 6%. Antofagasta, Hikma Pharmaceuticals, Natwest Group, Imperial Brands and Marks & Spencer gained 1 to 3%.

Legal & General Group dropped more than 6%. Schrodders and St. James's Place lost 5.45% and 5.2%, respectively. Sainsbury (J) drifted down 4.25%, while Pershing Square Holdings, Convatec Group, Spirax-Sarco Engineering and BAE Systems lost 3 to 4%.

Prudential, Rolls-Royce Holdings, Whitbread, Admiral Group, JD Sports Fashion, Rightmove, Smith & Nephew, Diageo and Bunzl also ended sharply lower.

In the German market, Symrise, Sartorius, Fresenius Medical Care, SAP, Daimler Truck Holding, Porsche, Hannover Rueck, Zalando, Munich RE, Allianz, Continental, Merck, Rheinmetall, BMW, Volkswagen and Mercedes-Benz lost 1 to 4%.

Deutsche Bank surged about 8.5%. Infineon gained more than 3% and Commerzbank climbed 1.6%. Online takeaway food company Delivery Hero gained 6.5% after reporting strong Q1 results and raising its FY24 revenue outlook.

Food delivery company HelloFresh gained 3.7% after confirming its FY24 outlook.

In the French market, WorldLine lost more than 6%. Dassault Systemes SE dropped 4.2% despite reporting solid first-quarter results and backing guidance.

Pernod Ricard ended lower by about 2.5% after reporting worse than expected third quarter sales.

LVMH, Teleperformance, Legrand, Hermes International, Publicis Groupe, Carrefour, Airbus Group and Capgemini lost 2 to 2.5%.

Sanofi gained more than 4%. The pharmaceutical giant reiterated its outlook for 2024 adjusted earnings per share (EPS) to decrease by a low single-digit percentage, excluding currency fluctuations.

Eurofins Scientific, STMicroElectronics and Credit Agricole posted moderate gains.

BNP Paribas ended nearly 1% up, after beating first-quarter profit forecasts.\

Data from the Commerce Department said the personal consumption expenditures price index surged 3.4% in the first quarter after advancing by 1.8% in the fourth quarter.

Excluding food and energy prices, the PCE price index spiked 3.7% in the first quarter after jumping by 2% in the fourth quarter.

In economic releases from Europe, German consumer confidence is set to rise again in May, survey conducted by the market research group GfK and the Nuremberg Institute for Market Decisions (NIM) showed.

The forward-looking consumer sentiment index rose to -24.2 in May from revised -27.3 in April. The reading was expected to rise moderately to -25.9.

France's manufacturing confidence weakened in April largely due to the worsening order books, monthly survey results from the statistical office INSEE revealed.

The manufacturing confidence index fell more-than-expected to 100 in April from upwardly revised 103 in March. The reading was seen at 102.

UK retailers reported a sharp decline in sales in April, the latest monthly Distributive Trades survey results from the Confederation of British Industry showed.

A net 44% of retailers said sales volumes decreased in April, in contrast to the 2% reporting an increase in March. A balance of 19% forecast sales to fall again next month.

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