Europe close: Markets firmly in the red as Suez lies wounded
European shares finished lower on Wednesday, as the utilities sector was hit by a profits warning at France's Suez.
The benchmark pan-European STOXX 600 index ended the day down 0.37% at 401.31, as were most major European bourses.
In Paris, the CAC 40 was down 0.72%, while Germany’s DAX lost 1.07% to 13,414.74 and the IBEX 35 in Spain fell 0.44% to 10,563.00.
Across the channel, London’s FTSE 100 was off 1.14% at 7,643.43, while the more domestic-focussed FTSE 250 slipped 0.64% to 20,538.46.
Suez shares plunged 19% at one stage, before closing 16.77% into the red after the waste and water company revised down its 2017 earnings forecast due to extra costs in Spain.
It also revealed it would be closing down some contracts in Morocco and India.
In the UK the FTSE 100 was hit by a stronger pound, with most of the index's constituent companies trade in dollars and are sensitive to exchange rate movements.
The dollar weakened further, suffering a renewed sell after US Treasury Secretary Steven Mnuchin said it this was good for trade.
In corporate news, accounting software developer Sage retreated 6.48% after it increased sales slightly below target in the first three months of its financial year as it invested "heavily" in sales training to allow sales to accelerate in coming months.
Chile-focused miner Antofagasta was on the back foot by 0.66% after it said full-year copper production fell 0.7% to 704,300 tonnes, in line with guidance.
Pharma stocks received a boost as Switzerland's Novartis rose 2.75%, having reported stronger than expected full year sales and profits.
Fourth quarter net sales rose 2% year-on-year to $12.9bn on a constant currency basis, with full year sales up 2% to $49.1bn.