Amec Foster Falls 20%, European Shares Remain Flat on Thursday
European shares remained flat on Thursday after early fluctuations. Earnings reports led to the fluctuations, with Amex Foster shares falling 20% on the day.
Banking and pharmaceutical stocks helped stabilize the market.
AMEC Foster (AMFW) stock plummeted 20.70% on the day following the announcement that the company expects a decline in its oil and gas business in 2017. The company expects solar power projects to slip, too.
The company expects its performance to be in line with expectations, but investors hoped that the guidance would improve in 2017.
Rising oil prices aren’t expected to help the engineering firm add to their bottom line in the coming year. Investors fear that the company’s profits will not improve for several years and will be a slow turnaround based on the data.
Contracts for differences trading has increased as oil prices remain unstable.
“OPEC’s November 30 meeting will be at the center of every trader’s radar,” states trading platform Opteck. A proposed reduction in output could help to control oil prices and raise prices.
News from Iraq, the second largest oil producer in OPEC, that the company will not participate in a production freeze has caused market uncertainty. Iraq aims to increase output to help fund the country’s fight against the Islamic State.
Berendsen (BRSN) stock is down 14.78% at the end of trade on Thursday. The company’s shares fell as much as 16.3% on the day. The support services company’s stock fell on the release of a profit warning.
The company cited higher-than-expected costs as the reasoning for the warning.
Nokia Corp. (NOK) shares fell 8.24% on the day. The company announced that there will be a sharp decline in their Q3 earnings. Wireless-network equipment was a blackspot for the company, as demand continues to weaken.
The company diversified its holdings, which will allow its other branches to improve their performance.
Market conditions remain sof,t according to Rajeev Suri, Chief Executive Officer.
Several companies helped to offset major losses in European markets. Barclays (BCS) rose 4.8% on the day after the company’s Q3 profits beat forecasts. The company is working to limit the fine from the United States over the company’s mortgage security issues. Barclays has recommended a fine of as much as $2 billion.
Progress in the matter will help ease investor concerns.
Revenue in the third quarter reached $7.15 billion, with net income of $543.6 million on the quarter. The company’s stock is down 40% in the last year.
Author: Jacob Maslow