European stocks dropped as President Obama said he would allow US air strikes against militants in Iraq. The ESTX 50 (-1.16%), UK markets (-0.93%), CAC 40 (-0.95%) and the Dax (-1.43%) all posted losses in early trading. Obama authorised limited air strikes against Sunni militants in Iraq to protect US personal and Yezidis, a minority group concentrated in the north of the country who have been targeted by militants and are stranded on a mountain. He also said military planes are dropping food and water for them. Monte Paschi plunged -8.9% after reporting a net loss of €178.9 million in the second quarter, more than the average estimate of €71.5 million loss among analysts surveyed by Bloomberg News. Tod’s sank -9.6% after first half sales of €477.7 million missed projections for €487.2 million. Nokian Renkaat slid -7.3% after reporting that sales in Russia decreased 31% in the six months through June. Russia and surrounding countries are the company’s largest market. Allianz SE added +0.9% after saying net income rose to €1.76 billion in the second quarter from €1.59 billion a year earlier, helped by lower natural disaster claims and higher earnings at the life and health insurance unit.
US stocks fell as concern that the Ukraine conflict is escalating offset better than estimated earnings and a drop in American jobless claims. The Dow Jones Industrial Average (-0.46%), S&P 500 (-0.56%) and the Nasdaq Composite (-0.46%) all declined. Aetna led declines among health-care companies, sliding -4% as Goldman Sachs Group Inc cut its rating on the company to “neutral” from “buy”. Humana Inc slumped -3.4% and Well Point Inc lost -3.6%. Scripps Networks Interactive Inc declined -5.7% after reporting second quarter revenue that missed analyst estimates. Harman International Industries Inc slid -4% as it forecast 2015 earnings below projections. Fox rose +5% after announcing fourth quarter profit that topped analysts’ estimates, one day after the company dropped its $75 billion bid for Time Warner Inc. Symantec Corp climbed +1% after reporting revenue and profit that topped estimates in the fiscal first quarter.
Asian stocks dropped as US President Obama authorised air strikes in Iraq. Nikon Corp slumped -9.4% in Tokyo after reducing its profit forecast. Taiyo Yuden Co plunged -8.9% after cutting its net income target. Melco Crown Entertainment Ltd dropped -3.4% in Hong Kong after the Macau casino operator posted earnings that missed estimates and said its Taiwan branch was indicated for alleged foreign exchange violations. Shares of casino operators extended losses in Hong Kong after retreating yesterday. Citigroup Inc lowered its 2014 revenue growth estimate for Macau Casinos to 4% from 11%. Galaxy Entertainment Group Ltd slid -0.5% after tumbling -6.4% yesterday. Sands China Ltd dropped -1%. Nippon Electric Glass Co dropped -8.8% after reducing its nine month net income forecast. Neptune Orient Lines Ltd slipped -1.6% after saying its second quarter net loss widened.
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