European stocks retreating on banks and miners (MarketWatch) (05-02-2008)

LONDON (MarketWatch) -- European stocks were trading lower on Tuesday morning on weakness in the financial and mining sectors, which did not take into account the otherwise well-received earnings from BP and KPN.

The Dow Jones Stoxx 600 index inched lower by 0.5% to 327.60, with miners under pressure as March-date gold moved down $7.20 to $900.00 an ounce.

BHP Billiton moved 1.9%. The firm reports results after the close and is also expected to reveal its intentions with regard for bidding for peer Rio Tinto. Rio Tinto shares lost 1.8%, while Anglo American shares lost 1.2%.

Among the European indices, the U.K. FTSE 100 index was down by 0.3% to 6,006.10, the German DAX 30 index was losing 0.4% to 6,973.53 and the French CAC-40 index was fractionally lower by 0.1% to 4,966.75.

Financials weakened in Europe as well, with Deutsche Bank down 1.4%, UBS down 1.5% and Credit Suisse Group down 1.5% in the banking sector.

Earnings, and shares in oil giant BP rose 1.5%. The firm said that fourth-quarter net profit rose 53% to $4.4 billion as revenue for the period rose 30% to $81.22 billion.

Meanwhile, shares in Dutch telecom KPN rose 2% after it said that fourth-quarter net profit surged to 1.58 billion euros, or 0.85 euros a share, from 426 million euros, or 0.22 a share. Revenue rose to 3.66 billion euros, from 3.04 billion euros.

The firm expects total revenue and other income to exceed 15 billion euros in 2010, with adjusted operating profit expected to exceed 5.5 billion euros.

Deal speculation also gave another Dutch firm a boost.

Shares in office supplies wholesaler Corporate Express shot up 26.4% after a report in Dutch newspaper De Telegraaf that the company is in talks to be bought by Staples of the U.S.

The discussions are preliminary and the details of any deal are not yet known, according to the report.

Source: MarketWatch