Receive $80 Grab vouchers valid for use on all Grab services except GrabHitch and GrabShuttle when you subscribe to BT All-Digital at only $0.99*/month.
Find out more at btsub.sg/promo
[LONDON] A drop in autos stocks after Germany's Schaeffler cut its profit outlook and disappointment over a failed buyout of Stada hit European shares on Tuesday, offsetting gains among basic resources firms and Spain's Bankia.
The pan-European STOXX 600 index fell 0.3 per cent, and blue chips were 0.4 per cent lower. Germany's DAX was 0.4 per cent weaker.
Autos were the biggest pain point in Europe, falling 1.4 per cent after German auto parts supplier Schaeffler slashed its profit guidance on growing price pressures and high costs.
Schaeffler's shares tumbled 11 percent, set for their biggest one-day fall since its 2015 IPO.
German drugmaker Stada was another sizeable faller, dropping 6.7 per cent after private equity groups Bain Capital and Cinven failed to win the required shareholder acceptances to take over the firm. So far this year Stada's shares have rallied nearly 26 per cent, boosted by buyout talks.
Spanish banks were a bright spot as investors cheered Bankia's move to buy smaller peer BMN in a deal worth around US$924 million, a further step in cleaning up Spain's beleaguered banking sector. Bankia's shares rose more than 4 per cent Gains among mining firms Anglo American, Rio Tinto and BHP Billiton helped prop up the basic resources sector, which gained 1.3 per cent. Britain's commodities-heavy FTSE 100 .FTSE. index was flat.