Asia Markets
Soft Earnings, Rising Crude Prices Lower European Bourses Midday
European bourses tracked moderately lower midday Thursday as traders mulled earnings reports and rising oil prices.Shares of Nestle fell 7.1% midday after the Swiss food-giant reported soft sales and solidly lower profits in H1, due in part to higher coffee and cocoa prices.Oil and property stocks led gains on continental trading floors, while food, tech and bank shares lagged.Front-month North Sea Brent crude-oil futures were up 5% at $98.77 a barrel, in midday trades.Investors also eyed Wall Street futures in the red, but largely higher closes overnight on Asian exchanges.The pan-continental Stoxx Europe 600 Index was off 0.6% mid-session.The Stoxx Europe 600 Technology Index was down 1.5%, and the Stoxx 600 Banks Index lost 1.1%.The Stoxx Europe 600 Oil and Gas Index rose 1.7%, while the Stoxx 600 Europe Food and Beverage Index declined 3.5%.The REITE, a European REIT index, rose 1.3%.On the national market indexes, Germany's DAX was down 0.6%, and the FTSE 100 in London lost 0.2%. The CAC 40 in Paris was down 1.1%, and Spain's IBEX 35 eased 0.6%.Yields on benchmark 10-year German bonds were higher, near 3.19%.Front-month North Sea Brent crude-oil futures were up 5% at $98.77 a barrel.The Euro Stoxx 50 volatility index was up 8% at 18.38, but still indicating below-average volatility for European stock markets in the next 30 days, a positive signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges.
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