European markets edge lower amid earnings; Deutsche Bank and Commerzbank merger talks collapse - CNBC

European stocks were slightly lower Thursday afternoon, as market participants monitored another deluge of corporate earnings.

The pan-European Stoxx 600 was down around 0.15% during early afternoon deals, with most sectors and major bourses in negative territory.

Market focus is largely attuned to corporate results, as investors reacted to another flurry of reports.

Europe's banking index led the losses shortly after midday, down around 0.8% amid earnings news. Barclays was the worst performer, with shares down 3% after first-quarter profit fell 10% compared to a year ago.

Swedbank was also trading lower, with shares down nearly 3% after it admitted to previous shortcomings in tackling money laundering.

UBS reported a $1.14 billion net profit for the first three months of the year as improving market conditions at the end of the quarter helped to soften a hit to trading revenues and client activity. The 27% drop in earnings for Switzerland's largest bank still beat analysts' expectations. Shares were trading slightly higher at around 1:00 p.m. London time.

Merger talks between Germany's top two lenders, Deutsche Bank and Commerzbank, ended in failure on Thursday. The banks cited the need for extra capital, restructuring costs and execution risks as the reasons why the merger would not be in their best interests. Both lenders were trading over 1% lower on the news.

Meanwhile, Nokia reported a surprise quarterly loss on Thursday, citing tough competition in its core networks business. Shares of the Finnish telecom network equipment maker tumbled more than 8%.

Away from corporate results, the proposed merger between Sainsbury and Asda was blocked by the U.K.'s competition watchdog on Thursday. The Competition and Markets Authority said the merger would raise prices for consumers and lead to longer checkout queues. Shares of Sainsbury were down almost 5%.

On the data front, Spain's unemployment rate edged closer to 15% over the first three months of 2019. The official figures continue to underline a weak link in the economy days before a hotly contested election.

The rate rose to 14.7% in the three-month period to March, up from 14.45% in the final three months of 2018.

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https://www.cnbc.com/2019/04/25/europe-markets-barclays-ubs-and-bayer-corporate-results-in-focus.html

2019-04-25 11:57:19Z
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