European stocks take cue from mixed Wall Street close

Despite a steady stream of relatively good earnings reports, European indices are all losing ground Tuesday as they take their cue from the US market which closed mixed on Monday evening with the S&P 500 and the Nasdaq closing lower but the DJIA rising almost 45 points on the day. The mood was somewhat affected by results from TV streaming giant Netflix which reported that it had booked 1 million fewer new subscribers than expected in the last quarter. In the preceding three quarters the rise in new Netflix subscriber numbers seemed unstoppable and the general exuberance over the ascent of the company helped fuel gains across tech stocks. But other industries continued to do well, banks in particular, with Bank of America reporting a profit rise of 33% which helped the DJIA close in positive territory.

Despite a steady stream of relatively good earnings reports, European indices are all losing ground Tuesday as they take their cue from the US market which closed mixed on Monday evening with the S&P 500 and the Nasdaq closing lower but the DJIA rising almost 45 points on the day. 

The mood was somewhat affected by results from TV streaming giant Netflix which reported that it had booked 1 million fewer new subscribers than expected in the last quarter. In the preceding three quarters the rise in new Netflix subscriber numbers seemed unstoppable and the general exuberance over the ascent of the company helped fuel gains across tech stocks. 

But other industries continued to do well, banks in particular, with Bank of America reporting a profit rise of 33% which helped the DJIA close in positive territory.

Unlike European indices, the region’s car sales were decisively higher, rising by a record 5.2% in June. Sales in France and Spain in particular powered higher, up 9.2% and 8% respectively, but sales in Britain continued to be affected by scepticism over Brexit causing overall sales to drop 3.5% in the quarter.

Royal Mail reports higher profits on booming parcel deliveries

In London, Royal Mail managed to fend off losses caused by Europe’s stricter new data law by expanding its parcel delivery business GLS by 10% and increasing revenue in the segment by 11%. 

The new stricter European data privacy law which came into effect towards the end of May has hit Royal Mail’s marketing sales business as customers opt out of promotional mail but higher parcel sales have offset that loss. 

Royal Mail shares were up 1.77% in early trade.

Oil prices turn around on Norway strike

Oil prices were higher despite the backdrop of increasing supplies as hundreds of workers in Norway walked out on Monday because of a strike over pensions and wages which is now extending into its second week. 

There have been no significant disruptions to production yet, but if the strike continues some contracts could potentially be cancelled. Brent Crude is trading up 0.45% and WTI is also trading higher, up 0.36%, although the West Texas market will not be affected by the oil production flow in Norway.

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