Standard Chartered, BHP Billiton crash after reporting net loss

Tuesday, 23. February 2016 11:01

Major European indexes traded lower on Tuesday. The National Institute of Statistics and Economic Studies issued a report today on business climate in France in February, registering a steady decline in the balance of opinion on past activity since November last year, and less optimism among industrialists on general production expectations in the sector compared to the previous months. Nonetheless, most of main indicators of the business climate were above their long-term average.

The FTSE was 0.37% down to 6,014 points. Standard Chartered saw its shares crash 4.79% to 415 pence per share (both 10:38 a.m. CET). The London-based multinational bank reported its full-year earnings today, stating a loss before tax of $1.52 billion for fiscal 2015, in comparison with its profit of $4.24 billion from a year before. BHP Billiton became the second-worst performer, with a decline of 3.77% to 765 pence, after it reported its half-year earnings, stating a massive net loss of $5.67 billion incurred in six months to December, from net profit of $5.35 billion for the same period in the previous year. The mining giant reported it would trim the dividend by 46 cents for 2015, to just 16 cents paid to shareholders, adding the period of weaker prices and higher volatility will be prolonged.

The DAX was 0.62% down at 9,514 points (10:42 a.m. CET). RWE AG decreased by 2.25% to €10.63 (10:41 a.m. CET). The German-based electric utilities company reported a change in executive board on February 17, that is supposed to come into effect from the first day of August.

Swiss benchmark SMI declined 0.60% to 7,913 points. Swiss Re was among the worst performers with a decrease of 0.8% to 92.7 francs. (both 10:43 a.m. CET). The group, with operations in all insurance-based forms of risk transfer, today reported a fourth-quarter net profit of $938 million from $245 million in the same period a year ago. However, Swiss Re's property and casualty net profit dropped to $703 million, from $1.2 billion in the same quarter a year earlier.

The euro depreciated 0.20% against the dollar and 0.48% against the Swiss franc, while it rose 0.02% against the British pound (all 11 a.m. CET).

Related Links: Standard Chartered plcBHP Billiton plc.
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