Jan. 3 (Bloomberg) — European stocks fell for a second day,
led by retailers, after DSG International Plc forecast that profit
will miss analysts estimates, Next Plc said trading was
“difficult and oil reached $100 a barrel.
DSG International, Europes second-biggest consumer
electronics retailer, tumbled 22 percent. Clothing retailer Next
dropped the most in two weeks.
The Dow Jones Stoxx 600 Index lost 0.4 percent to 358.76 at
8:43 a.m. in London, extending yesterdays 1.3 percent decline.
The Stoxx 50 sank 0.3 percent, as did the Euro Stoxx 50, a
measure for the euro region.
“The profit warning from DSG International shows that the
Christmas season in the U.K. wasnt nearly as good as any
retailer needed it to be, said Espen Furnes, who helps
oversee the equivalent of $7.1 billion at Storebrand Asset
Management in Oslo. “Were going to see more warnings in the
weeks to come.
National benchmarks fell in all 17 western European
markets that were open. Frances CAC 40 slid 0.6 percent, and
the U.K.s FTSE 100 decreased 0.2 percent. Germanys DAX
retreated 0.3 percent.
U.S. stocks slumped yesterday after the biggest drop in
manufacturing in five years sent the Dow Jones Industrial
Average to its worst start of the year since 1983. Shares fell
today in Asia.
Investors today will be looking at U.S. jobless claims and
the ADP Employer Services report for clues on employment ahead of
the Labor Departments monthly figures due tomorrow.
U.S. Treasury two-year notes were little changed, while the
euro was near the highest in three weeks against the dollar.
DSG, Next
DSG International sank 23.5 pence to 83.75. Europes second-
biggest consumer electronics retailer said annual pretax profit
will be as much as 50 million pounds ($99.2 million) less than
analysts estimates because of a drop in same-store sales.
Kesa Electricals Plc, the owner of Darty electronics stores in
France and Comet in the U.K., fell 4.3 percent to 225 pence.
Next fell 3.5 percent to 1,607 pence. The U.K.s third-
largest clothing retailer said trading is “difficult and that
it is not forecasting like-for-like growth in 2008 retail. The
company also said it expects full-year profit to be “slightly
ahead of analysts estimates after sales increased at the Next
Directory catalog and revamped stores drew shoppers.
Royal Dutch Shell Plc and BP Plc led energy companies higher.
Shell, Europes largest oil company, gained 0.8 percent to 28.82
euros. BP, the second-biggest, added 0.8 percent to 621.5 pence.
Oil reached $100 a barrel yesterday in New York on concern
that violence in Nigeria may disrupt supply as global demand for
commodities climbs. Crude for February delivery today traded at
$99.40 a barrel in after-hours electronic trading on the New York
Mercantile Exchange.
More to Run
“The whole oil story still has plenty to run, said
Stephen Pope, chief global market strategist at Cantor Fitzgerald
in London. “The whole oil-related family, companies, producers,
explorers will benefit. You will be able to see good profits made
by the big producers.
E.ON AG added 1.6 percent to 145.61 euros after Lehman
Brothers Holdings Inc. said Germanys largest utility may present
“increased targets when it reports full-year earnings in
March. The company has made a “strong start executing its
strategic plans, Lehman said.
To contact the reporter for this story:
Sarah Thompson in London at
