European markets dipped on Tuesday as profit-taking continued for a second day. Shares of Carlsberg (CO:CARLa) led the declines after a rise in profits at the Dutch brewer fell short of estimates. The German DAX has fallen to its lowest in over a week after turning positive for the first time this year on Monday.
Trading was thin on the FTSE 100 with minimal share price movement as traders took stock of a fall in employment claims and another sign that the economy has held its own post-Brexit.
CRH PLC (LON:CRH) topped the UK benchmark as shares broke out to the highest in twelve months. Investors are betting on its exposure to US non-residential construction and its possible candidacy for the Euro Stoxx 50 index.
Shares of Admiral (LON:ADML) tanked over 7% in spite of a 23% hike to its interim dividend, taking other insurers including Old Mutual (LON:OML) and RSA (LON:RSA) down in sympathy. Pre-tax profit growth fell slightly short of estimates and deterioration in its capital position raised concerns over the company’s to pay out on future claims.
Admiral is another victim of low interest rates since they raise the current value of future claims payments.
US stocks look set for a mixed open as traders await minutes from the Federal Reserve’s July meeting in which rates were again kept on hold.
USA pre-opening levels
S&P 500: 1 point higher at 2,179
Dow Jones: 12 points lower at 18,540
Nasdaq 100: 2 points higher at 4,799
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