European Stocks Lower After Apple, Amazon Disappoint; Volvo Cars Surges on Debut

European Stocks Lower After Apple, Amazon Disappoint; Volvo Cars Surges on Debut

European stocks were lower Friday morning as traders digested a raft of U.S. and domestic corporate earnings.

The pan-European Stoxx 600 was around 0.6% lower shortly after the opening bell, with all sectors and major bourses in negative territory. Technology stocks led losses, shedding 1.1% on the back of disappointing earnings from tech giants Apple and Amazon.

European traders reacted to a busy morning of earnings, with BNP Paribas, Natwest, Glencore, BBVA and Bank of Ireland just some of those reporting before the bell.

On Wall Street, stock futures slipped in early morning trading Friday. Amazon shares dropped 4% in extended trading after the e-commerce giant badly missed earnings and revenue expectations for the third quarter. Apple stock also fell more than 3% in after hours trading after the tech giant’s quarterly revenue fell short of expectations amid larger-than-expected supply constraints on iPhones, iPads and Macs.

Back in Europe, new inflation data for the euro zone will be released at 10 a.m. London time.

This comes after the European Central Bank decided Thursday to keep interest rates and its monetary policy stance unchanged, despite ongoing inflationary pressures. President Christine Lagarde tried to play down the chances of a rate hike for 2022, hinting that market players might be getting ahead of themselves with their predictions.

Stocks on the move

Volvo Cars made its market debut on Friday, opening at 58.75 Swedish krona compared to its IPO price of 53 krona — a jump of around 9%.

Video game maker Ubisoft rose to the top of the European blue chip index during early trade after reporting strong second-quarter earnings.

Biotechnology firm Argenx gained 5% after posting positive financial results. Sweden’s Vitrolife and Swiss insurer Swiss Re added 5% and 3% respectively.

At the other end of the index, Dutch lighting manufacturer Signify was trading almost 7% lower after its third-quarter earnings fell more than 8% due to supply chain challenges.

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