Market Update
European markets fell Wednesday as earnings reports from the continent's companies started to show the effects of the ongoing crisis in Ukraine.
The FTSE was down 0.4%. The CAC 40 Paris declined 0.3% while the DAX was off 0.2%.
Some economic reports too weighed on the markets with data showing a 2.8% drop in German factory orders in March versus expectations for an increase of 0.3%. Industrial production also fell in France. Another report showed the French trade balance declined more than expected to $4.9 billion in April versus expectations for a figure of $4 billion.
The fighting in Ukraine is at its worst this week with no signs of the conflict letting up and leaving little room for peace efforts.
Stocks on the Move
HSBC PLC was down 0.8% after the lender reported a 20% drop in first-quarter profit from a year earlier when earnings grew from asset sales. Excluding one-off sales gains, profit was still 13% lower. HSBC said it had continued to experience "muted customer activity" in April.
Other U.K. lenders also dropped with Barclays down 1.8% and Lloyds down 1.4%. However, RBS was up 0.9% while Standard Chartered edged 0.1% higher.
Legal & General Group outperformed its shares up 2.8% after the insurer and fund manager said cash generation was up 21% on year in the first-quarter.
Rolls-Royce Holdings was down a percent after it agreed to sell its energy gas turbine and compressor business to Siemens for 785 million pounds.
J Sainsbury was flat after results.
Shares of Societe Generale were down 1.2% after the No. 2 French lender wrote down 525 million euro on the value of its Russian unit Rosbank blaming the uncertainty and a decline in the Russian rouble.
Brewer Carlsberg was down about a percent as the company, with the highest exposure to Russia too partly blamed the currency for a fall in operating profit. The company also lowered its full-year net profit estimates.
Also down after results, Veolia Environment fell 3.9%.
Siemens was up 1.8% despite weaker-than-expected increase in profits. Siemens also agreed to a joint venture with Japan’s Mitsubishi Heavy.
Heidelberg Cement was down 2.6% despite better-than-expected operating income.
Henkel was up 3.8% after the consumer goods group reported better-than-expected first-quarter profit.