The FTSEurofirst 300 index fell 1.8 percent on Thursday, heading for the biggest daily loss since September 28. The European stock index fell on news that the European Central Bank will be adjusting its monetary policies and is concerned with the euro zone’s inflation data.
Rolls-Royce Holdings (RR), a British entity, fell dramatically on the day, down 19.5%. The automaker released a profit warning that caused stocks to tumble to their biggest one-day loss in 15 years. This is the fourth time that a profit warning has been issued by Rolls-Royce in this year. The company states that repairs and services of existing engines are the cause for the company’s profit decline.
Commodity stocks were the biggest losers on the day, down 4% while energy also fell 2.5% in European markets. Copper continued to fall, with prices now at a six-year low due to oversupply. The Brent was also slower following a statement from OPEC that a market surplus will persist in 2016.
RWE, a German utility company, announced that the company will barely make its full-year net profit target, which send its stock down 10% on the day.
As of November 12, 84% of companies in the STOXX Europe 600 released their Q3 reports, with 47% of companies meeting or surpassing revenue expectations, and 51% beating analyst forecasts.