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Euro shares hit by weak earnings

Wednesday, October 10 16:39:36

European shares fell for a third straight session today, dragged lower by expectations of weak corporate earnings in the region after a subdued start to the U.S. reporting season.

Shares in Bang and Olufsen fell 3.8 percent in volume nearly four times their daily average as the Danish stereo and television maker recorded a much wider than expected quarterly loss due to weakening demand for luxury goods.

It added to investor concerns after U.S. bellwether aluminium maker Alcoa cut its demand forecasts and oil major Chevron Corp issued a profit warning.

"I think the earnings season is going to be very disappointing," Robert Quinn, chief European strategist at Standard and Poor's Capital IQ, said.

"There may even be the case for a reversal (of the recent equity rally), with the macro side still negative while the impulse from policy won't be contributing very much."

The pan-European FTSEurofirst 300 index provisionally closed 0.4 percent lower at 1,091.57 points.