European shares down, Brazil-exposed stocks under pressure

jueves 10 de septiembre de 2015 10:35 GYT
 

* Pan-European FTSEurofirst 300 index falls 1.3 pct

* Brazil-focused stocks down as S&P cuts country rating

* Next advances after reporting rise in profits (Adds detail, prices)

By Atul Prakash and Alistair Smout

LONDON, Sept 10 (Reuters) - European shares retreated on Thursday as companies exposed to Brazil came under severe selling pressure after Standard & Poor's downgraded the country's credit rating to "junk" grade.

Shares in French retailer Casino Guichard, which received about half of its 2014 revenue from Latin America, fell 4.4 percent, while Edenred, which generates around half of its profit from Brazil, dropped 5 percent.

Supermarket Carrefour, which gets 14 percent of its annual sales from Brazil, fell 2.2 percent. Other companies that have a significant presence in the country, like Seadrill , Banco Santander, Anheuser-Busch InBev , British American Tobacco, Galp Energia and Unilever, slid between 1.1 percent and 7.1 percent.

"Companies which are heavily exposed to Brazil are clearly not good plays as the resource-dependent economy is contracting and the much-needed investments are likely to get pushed back. All these issues make Brazil a less attractive place to do business," Peter Dixon of Commerzbank said.

"If you are exposed to emerging markets, you have to try to find other markets that are doing better."   Continuación...