Europe midday: Stoxx 600 retreats as Ferrari drags Italian stocks lower

(Sharecast News) - The Stoxx 600 was pulling back from recent records on Thursday as gains in Frankfurt and Paris offset by weakness elsewhere, including a 1.1% drop in Milan as shares of luxury sportscar maker Ferrari plummeted.

The Stoxx was down 0.2% at 572.91 after having closed Wednesday's session at an all-time high of 573.79. The pan-European benchmark had risen in seven of the past nine trading sessions, having gained 4.3% since the close on 25 September.

Nevertheless, French stocks were on the rise despite the ongoing political gridlock, with French president Emmanuel Macron expected to name a new prime minister within the next day or so, quashing speculation about a snap election. The move follows S�bastien Lecornu's abrupt resignation on Monday after just one month in the role - the country's third PM in under a year.

"French bond yields are little changed this morning, as news that a new PM could be appointed in the coming days has not caused a big market reaction," said Kathleen Brooks, research director at XTB. "There are still a lot of risks associated with France including getting enough political support to pass a budget before year end, and this could limit enthusiasm for French bonds in the short term."

In economic data, Germany's trade surplus widened more than expected in August as imports slumped, according to Destatis on Thursday, though exports also came in below forecasts. The foreign trade balance stood at �17.2bn in August, up from �14.7bn in July. This was the highest surplus since May and well ahead of the �15.2bn consensus estimate.

Gerresheimer, Ferrari and HSBC drop

German industrial group Gerresheimer sank 14% in Frankfurt after slashing its full-year guidance for the third time in five months following a worse-than-expected third quarter.

Down 15% was Ferrari - its biggest one-day fall in nearly a decade - after underwhelming investors with its long-term guidance. The company raised both its revenue and profit estimates for this year, but its projected growth rate out to 2030 was well under what analysts had expected.

In London, HSBC fell after announcing plans to take Hang Seng Bank private in a deal that values the lender at 290 billion Hong Kong dollars ($37bn). HSBC, which owns around 63.3% of Hang Seng Bank, said it has offered HK$155 a share for the shares it does not already own. This is a premium of about 30% to the last closing price.

Banking peer Lloyds was also weaker after revealing it will need "material" additional provisions to provide redress to customers in the motor finance mis-selling scandal.