European stocks fall for a fifth day amid disappointing results

European stocks fell for a fifth day as companies reported disappointing results while a bond rout abated and metals rallied.

The Stoxx Europe 600 Index headed for its longest losing streak in six weeks after Anheuser-Busch InBev posted a surprise drop in profit and Novo Nordisk, the world's biggest maker of insulin, cut its long-term growth target.

German bunds were little changed following a selloff this week spurred by speculation the European Central Bank along with other global policy makers will rein in stimulus.

A gauge of dollar strength was near a seven-month high before the US reports gross domestic product.

Aluminum rose to a 15-month high after a rally in iron ore prices in China.”

The guidance has been a bit disappointing,” said Daniel Murray, head of research at EFG Asset Management in London.

“Sentiment has been damaged by the fact that we are in the US election period and the fact that expectations with respect to the ECB are coalescing around the fact that it’s going to be less expansive than it has been this year.”

A rally in global equities is pulling back in October andbonds worldwide are on course for their worst month since the taper tantrum of 2013 amid growing concern central banks will step back from ultra-easy monetary policies while the Fed moves closer to raising interest rates as the economy improves.

US GDP growth quickened in the third quarter,economists in a Bloomberg survey said before a report on Friday.

The Stoxx 600 fell 0.4 per cent at 7:29 am in New York, after sliding as much as 1 per cent.

The gauge has lost 1.1 per cent this week. While most industry groups retreated in the past five days, banks climbed and lost their spot as the year's biggest losers, thanks to better-than-forecast reports at Spanish firms such as Banco Santander and Banco Bilbao Vizcaya Argentaria.

In the US, futures on the SandP 500 Index were little changed, with the gauge heading for its third weekly decline in four. Contracts on the Nasdaq 100 Index dropped less than 0.1 per cent on Friday.

Among companies moving on earnings:AB InBev lost 4.3 per cent after cutting its revenue projection.

Bloomberg