Siemens, BASF warnings weigh on European shares
LONDON, July 25 (Reuters) - Profit warnings by German heavyweights BASF and Siemens hit the country's stock index and cast a shadow over the broader European market on Thursday.
The world's top chemicals group BASF warned on its 2013 profit outlook, while engineering group Siemens, Germany's second-biggest company by market value, said it did not expect to reach its 2014 profit margin target.
Their shares fell 4.6 percent and 6.2 percent, respectively, taking the most points off Germany's DAX index, down 1 percent, and leading fallers across the FTSEurofirst 300 index , provisionally down 0.5 percent at 1,208.57 points.
"More companies, especially cyclicals, could disappoint next week when about three dozen major firms announce results, as many companies suffered in the second quarter due to sluggish industrial production and slowing growth in emerging markets," Christian Stocker, strategist at UniCredit in Munich, said.
"The DAX could fall another 5 to 8 percent during the summer months, but I don't see any further major fall as improving economic fundamentals would keep the markets underpinned. We are overweight healthcare, food and beverage and personal household goods sectors as they have got positive growth momentum."