European stocks close lower amid earnings; Austria Microsystems surges 17%

  • The pan-European Stoxx 600 closed lower Monday afternoon with major bourses and most sectors in negative territory.
  • Basic resources stocks led the gains, though technology stocks also finished the day's trading higher amid an uptick in revenue growth for electronic chip maker Austria Microsystems.

European markets closed lower Monday as investors monitored fresh economic data and corporate earnings.

Symbol
Name
Price
 
Change
%Change
Volume
FTSE
---
DAX
---
CAC
---
IBEX 35
---

The pan-European Stoxx 600 closed 0.19 percent lower with major bourses and most sectors in negative territory.

Basic resources topped the few sectors that ended Monday's trade in the green, up 1.26 percent.

Technology also closed on the upside, although the sector pared back some of the gains hit in mid-afternoon trade. It finished up 0.47 percent thanks to an uptick in revenue growth for electronic chip maker Austria Microsystems. The company said its revenue for 2017 almost doubled amid robust demand for its sensors from smartphone customers such as Apple. Its shares surged to the top of the European benchmark, closing up nearly 17 percent.

Dialog Semiconductor also closed near the top of the Stoxx 600, following news of a steep revenue increase from Austrain sensor maker AMS. Its shares were up nearly 1.5 percent.

Europe's banking sector closed 0.13 percent lower amid earnings news. Spanish state-owned lender Bankia cited one-off restructuring costs after it swung into the red in the fourth quarter. Its shares were over 3 percent lower on the news, having clawed back some of its losses from earlier on in the day.

Getinge reported fourth-quarter profit far below market expectations on Monday, ultimately closing trade at the bottom of the Stoxx 600. The Swedish medical technology group predicted slight growth in organic sales in 2018, although shares tumbled more than 10 percent after the earnings miss.

U.S. stocks lower

U.S. stocks started the week lower after a jump in sovereign interest rates gave investors pause. The Dow Jones industrial average had fallen 150 points by mid-morning Monday while the S&P 500 declined 0.4 percent.

Monday's negative trade contrasted with news that since the start of earnings season, the overwhelming majority of companies in the S&P 500 to have reported their latest figures have beat analysts' expectations, according to Reuters. Heavy hitters including the likes of Apple, Microsoft and Amazon are all scheduled to report this week.

Vote
Vote to see results
Total Votes:

Not a Scientific Survey. Results may not total 100% due to rounding.