European Stocks Slip After Weak Earnings
European stocks slipped on Monday after weak earnings from Sanofi and NatWest. The Stoxx Europe 600 Index fell 0.3%, with Sanofi and NatWest leading the losses. Sanofi, the French drugmaker, reported a drop in third-quarter sales and said it would cut jobs. NatWest, the British bank, reported a drop in profits and said it would reduce its dividend.
The Stoxx Europe 600 Index is down 4.2% this year, weighed down by the pandemic and its economic fallout. The index has been volatile in recent weeks, as investors weigh the prospects of a vaccine and the possibility of more stimulus from governments and central banks.
Sanofi’s Weak Earnings
Sanofi reported a 3.2% drop in third-quarter sales, to €8.9 billion ($10.5 billion). The company said it would cut jobs and reduce costs in response to the pandemic. Sanofi said it expects to save €1 billion ($1.2 billion) in costs by the end of 2023.
Sanofi’s shares fell 4.2% on Monday, the biggest drop in the Stoxx Europe 600 Index. The company’s shares have fallen more than 20% this year, as the pandemic has weighed on its sales.
NatWest’s Weak Earnings
NatWest reported a drop in profits for the third quarter, to £1.2 billion ($1.6 billion). The bank said it would reduce its dividend for the year, to £0.15 ($0.20) per share. NatWest’s shares fell 4.3% on Monday, the second-biggest drop in the Stoxx Europe 600 Index.
NatWest’s shares have fallen more than 30% this year, as the pandemic has weighed on its profits. The bank has been hit hard by the economic fallout from the pandemic, as businesses have struggled to pay back loans.
European Markets React
European markets reacted to the weak earnings from Sanofi and NatWest. The Stoxx Europe 600 Index fell 0.3%, with Sanofi and NatWest leading the losses. The index has been volatile in recent weeks, as investors weigh the prospects of a vaccine and the possibility of more stimulus from governments and central banks.
The German DAX Index fell 0.2%, while the French CAC 40 Index was down 0.3%. The UK’s FTSE 100 Index was down 0.4%.
Outlook for European Markets
The outlook for European markets remains uncertain. The pandemic and its economic fallout have weighed on the markets, and investors are still waiting for a vaccine and more stimulus from governments and central banks.
The Stoxx Europe 600 Index is down 4.2% this year, and the outlook for the rest of the year is uncertain. Investors will be watching for more news on the pandemic and its economic impact, as well as any news on a vaccine or more stimulus.