European stock markets fall
European equities fell on Tuesday, with the alcoholic drinks sector hit ahead of the festive season by a profits warning from French giant Remy Cointreau. London's benchmark FTSE 100 index dropped 0.87 percent to close at 6,636.22 points, Frankfurt's DAX 30 slid 0.11 percent to 9,290.07 points, while the CAC 40 in Paris gave up 0.57 percent to 4,277.57 points. Remy Cointreau warned that slowing spirits sales in China would hit annual earnings, and posted a 20-percent slump in first-half net profits. In reaction, the maker of Remy Martin cognac saw its share price tumble 8.3 percent to 66.00 euros in Paris. "Remy Cointreau's disappointing results and bleak outlook is pulling down the entire European drinks industry today," said Markus Huber at London-based brokerage Peregrine & Black. "The main catalyst for the poor performance... has been weak demand out of China where the holiday season has not measured up to expectations at all. Luxury brands are very sensitive to any change in consumer behaviour in China," Huber told AFP. Shares in Pernod Ricard, the world's second-largest maker of wine and distilled spirits, dropped 2.6 percent to 84.30 euros. And in London, the share price of British-based brewer SABMiller slid 2.4 percent to 3,175 pence, while peer Diageo was down 1.6 percent at 1,968 pence. "Spirits are low at Remy Cointreau ... following forecasts of a substantial drop in annual profits as a slowdown in China and weak demand from Europe hampers sales," added analyst Toby Morris at traders CMC Markets. Shares in German fashion house Hugo Boss fell 2.1 percent to 97.00 euros after the luxury brand said it will not achieve its targeted profit margin of 25 percent by 2015. Shares in German pharmaceutical group Bayer initially rose on news it has made a bid for its Norwegian partner and competitor Algeta, specialised in cancer treatments, for 1.8 billion euros. However the stock closed down 0.28 percent to 95.79 euros, with DZ Bank's Peter Spengler saying the Algeta's potential benefits don't justify that price. Mixed US data failed to revive European stocks in the afternoon session. US home building permits surged more than expected in October to the highest level in five years, while home prices continued to rise in top markets. But consumer confidence fell in November, according to the Conference Board, instead of rebounding from an October plunge amid the partial government shutdown. Nevertheless US stocks rose in midday trade. The Dow Jones Industrial Average was up 0.12 percent to 16,092.32 points, extending its record high close Monday. The broad-based S&P 500 edged up 0.09 percent to 1,804.03, while the tech-rich Nasdaq Composite advanced 0.34 percent to 4,008.23. In foreign exchange activity on Tuesday, the European single currency rose to $1.3559 from $1.3517 late in New York on Monday. The euro was stable at 137.43 yen, a day after when it had hit 137.99 yen -- the highest level since October 2009. The dollar reversed to 101.36 yen from 101.66 on Tuesday, when it had surged to a six-month high of 101.92 yen on the back of safe-haven demand. The British pound slid to 1.1940 euros but rose to $1.6187. On the London Bullion Market, the price of gold climbed to $1,247.50 an ounce from $1,243 on Monday. "Overall sentiment remains positive, while activity remains subdued due to the shortened trading week and Thanksgiving being celebrated this Thursday, any major pullbacks are still viewed as a welcome buying opportunity," Huber noted. Asian markets ended mixed on Tuesday, with Tokyo easing 0.67 percent on profit-taking as the yen regained some of the previous day's losses against the dollar. Sydney ended flat and Seoul added 0.33 percent. Hong Kong closed flat and Shanghai dipped 0.14 percent.
