European markets lower as global rally fades; Unilever up 10%
European bourses moved lower on Friday, pausing for breath after a strong rally at the start of the week, as investors digested economic data and more earnings reports.
The pan-European Stoxx 600 (^STOXX) was 0.3 percent lower with most sectors trading in the red. Banking stocks were the worst performers in mid-morning trade, but auto and basic resources also saw similar falls.
Stocks are taking a step back after the record highs hit earlier this week. In the U.S., the S&P 500 and the Nasdaq snapped a seven-day winning streak on Thursday. Looking at particular stocks, Unilever (London Stock Exchange: ULVR-GB) reached the top of the European benchmark at lunchtime trade after Kraft-Heinz said it had made an offer for the company. Unilever jumped 14 percent, on track to record its best day in 30 years, Reuters reported.
Property investment and development company Segro climbed nearly 4 percent after announcing revenues increased and saying that demand was holding up.
German insurer Allianz (XETRA:ALV-DE) announced a share buyback on Thursday evening and reported a 23 percent yearly rise in net profit for its last quarter. Its shares were up by more than 2 percent at lunchtime.
The Dutch oil and chemical storage firm Vopak (Euronext Amsterdam: VPK-NL) was at the bottom of the European benchmark, down by about 6 percent after announcing that it did not see any core profit growth taking place this year. Earlier in the session, the plastic supplier Essentra (London Stock Exchange: ESNT-GB) dropped nearly 4 percent on the news that its full -year profit dropped 26 percent.
The German carmaker Volkswagen (XETRA:VOW3-DE) moved slightly lower on Friday after new figures showed a sales decline in China.
In terms of data, the euro zone saw net investment figures rising in December while the U.K. saw a surprising third monthly fall in retail sales.
Meanwhile, on Friday, G-20 foreign ministers are meeting in Bonn, Germany and Canadian Prime Minister Justin Trudeau will meet German Chancellor Angela Merkel.
