EON, Energy Producers Drag Europe Stocks Down From 7-Week Highs

(Bloomberg) -- European shares slipped for the first time in six days, led by declines in utilities after EON SE earnings and energy producers.

EON sank 6.4 percent as it reported a first-half loss because of charges linked to the listing of its Uniper unit. Peer RWE AG fell 3 percent. Royal Dutch Shell Plc and Tullow Oil Plc helped drag down energy companies as oil prices declined.

The Stoxx Europe 600 Index slipped 0.3 percent at 12 p.m. in London, trimming a decline of as much as 0.4 percent. The volume of shares changing hands was about a third lower than the 30-day average. Germany's DAX Index, which entered a bull market on Tuesday, dropped 0.5 percent, weighed down by EON and exporters such as Thyssenkrupp AG as the euro strengthened.

“The earnings season hasn't been spectacular, the oil price has gyrated again,” said Ben Kumar, an investment manager at Seven Investment Management LLP in London. His firm manages 10 billion pounds ($13 billion). “It's enough, if you've made money, to go back to sit on the sidelines and not quite enough to get you back into the market yet. It's not been a particularly loved rally.”

In the past five days, fresh Bank of England stimulus measures, better-than-forecast jobs data in the U.S. and corporate earnings helped the gauge of European equities rebound 12 percent from its low following the U.K. vote to leave the European Union through Tuesday's close. Yet it's still 0.7 percent away from its June 23 level, while U.S. and Asian stocks have already recovered.

Equity gauges of most western-European markets fell on Wednesday, with all but one Stoxx 600 industry groups falling. France's CAC 40 Index dropped 0.3 percent, while the U.K.'s FTSE 100 Index declined 0.2 percent.

Among other stocks moving on earnings news, Danish biotech company Novozymes A/S sank 9.4 percent as it reported profit that missed estimates and cut its sales outlook. Brenntag AG dropped 2.2 percent after the profit forecast of the world's largest distributor of chemicals missed some analyst projections.

Prudential Plc gained 1.5 percent after it reported that first-half earnings beat analyst estimates. Belgium's Ageas SA climbed 4.2 percent after posting insurance profit that topped projections. G4S Plc surged 16 percent after saying revenue rose and keeping its dividend. Switzerland's Adecco Group AG climbed 2 percent as the world's largest staffing company reported earnings that topped estimates.

Entertainment One Ltd. rallied 7.8 percent after rejecting a takeover offer.

To contact the reporter on this story: Justin Villamil in London at jvillamil18@bloomberg.net. To contact the editors responsible for this story: Cecile Vannucci at cvannucci1@bloomberg.net.