European stocks dropped for a fourth day, their longest streak of losses in five weeks, as the region’s governments weighed tougher sanctions on Russia and concern grew the U.K. may be heading for partition. U.S. index futures were little changed, while Asian shares fell.
Sports Direct International Plc slid 3.3 percent after saying its performance in its first accounting quarter was hurt by England’s early exit from World Cup soccer tournament. Bilfinger SE lost 2.3 percent after announcing job cuts in Norway. Kingfisher Plc rose 2.6 percent after Europe’s largest home-improvement retailer said Ian Cheshire will step down as chief executive officer.
The Stoxx Europe 600 Index slipped 0.6 percent to 342.93 at 9:09 a.m. in London. The gauge has declined 1.7 percent since reaching a two-month high on Sept. 4 amid concern Scots may vote for breaking away from the U.K. and the cease-fire in Ukraine may prove fragile. Standard & Poor’s 500 Index contracts lost 0.1 percent today, while the MSCI Asia Pacific Index retreated 0.8 percent.
“The ongoing Ukraine situation and Russian sanctions are adding to a less positive outlook, while economic weakness in parts of the euro zone are concerns which investors need to address,” Richard Hunter, head of equities at Hargreaves Lansdown Plc in London, wrote in an e-mail.
The VStoxx Index, a gauge of expected volatility in euro- area stocks based on options prices, rose for a third day.
European Sanctions
Representatives of 28 European Union governments are meeting in Brussels to discuss tougher economic sanctions on Russia for its involvement in the Ukraine crisis. The talks follow the EU’s decision this week to put on hold a second package of economic penalties. The proposals include barring some Russian state-owned defense and energy companies from raising capital in the EU, according to an official who spoke on the usual condition of anonymity.
In the U.K., opinion polls have indicated that the result of a Sept. 18 referendum on Scottish independence is too close to call. Since a Sept. 7 survey by YouGov Plc put the nationalists just ahead, the possibility that the 307-year-old union could break up has increased. The pound has fallen, as have shares in businesses with large Scottish markets.
Sports Direct dropped 3.3 percent to 696.5 pence. The U.K.’s biggest sporting-goods retailer said revenue and profit at its premium-lifestyle and brands divisions decreased in the quarter through July 27, as England’s defeat in the World Cup offset some stronger weeks for sales.
Staff Reduction
Bilfinger SE fell 2.3 percent to 50.82 euros. The industrial-services provider plans to cut staff at its Norway unit to 1,200 from 1,800 by the end of the year as a result of lower investments from oil companies, according to a report in Stavanger Aftenblad, which cited an interview with Technology Director Tor Minsaas.
Swatch Group AG lost 1.7 percent to 491.80 Swiss francs. Apple Inc. yesterday revealed a smartwatch with health and fitness capabilities, and smartphone-like features such as maps and messaging.
Kingfisher gained 2.6 percent to 315.2 pence after saying the management change will take place before the end of its accounting year in January. He will be succeeded by Veronique Laury, currently the head of the French Castorama unit. Also today, Kingfisher reported unchanged first-half earnings as adverse foreign-exchange shifts wiped out growth. (Bloomberg)
