European shares fell on Thursday
European shares fell on Thursday despite signals from the European Central Bank that probably by the end of the year will put additional financial incentives. The positive effect of this could not offset row disappointing financial statements of companies in the region. On investor optimism prevailed and expectations the US Federal Reserve to start tightening monetary policy after new data confirmed the recovery of the labor market in the world's largest economy.
Sale of shares
During diverse trading pan-European FTSEurofirst 300 index fell 1.3%. France's CAC 40 slid more than 1.6 percent, while the German DAX - by 0.9%. The main index of the London Stock Exchange's FTSE 100 also fell more than 1.3% as shares in engine manufacturer Rolls-Royce fell by 23%, which is the largest one-day drop in history. Reason for this was the decrease in profit forecasts for 2016 - the fourth warning about the deterioration of what the company makes to shareholders only in the last year. The reason for the deterioration indicating a sharp decline in demand for spare parts and support services already sold engines for airplanes.
"This is yet another warning of worsening results that shocked investors. The company identified additional challenges for the aerospace and maritime business, suffering from the sharp decline in oil prices and orders for business jets," said told Reuters Keith Bowman, analyst at Hargreaves Lansdow.
According to Thomson Reuters data, 84% of European companies included in the index STOXX Europe 600, already published its results for the third quarter. Of these, 51% are reached or exceeded preliminary forecasts of analysts for profit. On the revenue side, however, this percentage dropped to 47%.
Yet markets were supported by applications of the ECB President Mario Draghi that the bank will review its monetary policy in December because of signals that inflation in the eurozone will not be able to recover to the desired levels. Analysts expect the ECB to lower even further their interest rates or expand the volume and duration of its program of quantitative easing by currently injected 60 billion. Per month in the financial system. As a result of the statements of Draghi euro fell by more than 0.15 percent against the dollar and the British pound.