The following is an excerpt from PATRICK GRAHAM | November 10, 2015 | reuters.com |
Asian stock markets fell and European shares struggled to find traction on Tuesday as investors digested the fallout of the third quarter earnings season and last week's strong signals from the U.S. jobs market.
More than 1 percent falls in Hong Kong .HSI and South Korea .KS11 led Asian markets to one-month lows .MIAPJ0000PUS as the prospect of a rise in U.S. borrowing costs and slower world growth haunted developing markets.
European stock exchanges started with some cautious gains before inching back into the red, and the euro was back on the defensive as investors bet the U.S. Federal Reserve would move next month, driving the dollar broadly higher.
"People are a little nervous because the macro signals are so mixed," said Andy Sullivan, a portfolio manager with Swiss investment firm GL Financial Group.
"The weak revenues we've seen on aggregate in the earnings season are obviously a sign of concern. Growth is both tepid and fragile. But profits were better and that says to me that companies have got themselves in better shape."
After a healthier start, the pan-European FTSEurofirst 300 .FTEU3 index was down less than 0.1 percent while the euro zone's blue-chip Euro STOXX 50 index .STOXX50E was marginally higher. Both have gained almost 10 percent this year, having recovered from a China-driven dip in July and August.
Vodafone was among the leading gainers after a strong earnings report, although political uncertainty continued to weigh on Portuguese stocks. More than three quarters of U.S. and European companies have now reported for the quarter.
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