Sainsbury stocks slipped 5.5%; European equities settled mostly lower

Sainsbury stocks

Equities across Europe was in the red on Wednesday’s closing session, same time when investors are enduring fresh corporate earnings and  anticipating the comments of the U.S. Federal Reserve regarding its verdict on hiking interest rates for June.

Auto stocks were one of the leading decliners after depressing news on its earnings. Tyre manufacturer Nokian was 5 percent lower when its first quarter results failed to meet predictions and analysts conclude that the higher price of raw materials can potentially depress the earnings to come.  

Basic resources were also on the negative zone on the back of dropping metal prices, they lost more than 2 percent in stocks. Mining company’s Antofagasta, Fresnillo and Centamin all finished lower by 1 percent.

The European stocks benchmark Stoxx 600 settled the trading lower by 0.04 percent as most of its sectors contributed to the declines.

Media company ITV closed the session lower following its disclosure that its chief executive Adam Crozier retired from the office, his replacement however has not been stated. They fell more than 2 percent in shares.

In other stocks, second largest supermarket chain in the U.K. Sainsbury dropped more than 5.7 percent due to its slumping pre-tax profits.

However, health stocks didn’t go with the flow as it ended marginally higher on earnings. Novo Nordisk posted its unexpectedly higher profits for the first quarter. The stocks of the Danish pharmaceuticals were close to touch the peak of the European benchmark as it advanced 7 percent.

British enterprise software company Sage Group was also higher by 3 percent when it posted a growth in net profit. In addition to the best performers, BNP Baribas, bank in France, announced better-than-expected Q1 revenue.

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