The main stock index of Western European countries is falling on Thursday, falling for the second day in a row on fears about the global economy and weak reporting of large companies.
The composite index of the largest companies in the region Stoxx Europe 600 by 11:09 QoQ fell by 0.3% and amounted to 396.54 points. The day before, the indicator lost about 0.5%.
The British stock index FTSE 100 by this time fell by 0.06%, the German DAX – by 0.65%, the Spanish IBEX 35 – by 0.03%. Meanwhile, the French CAC 40 rose by 0.04%, the Italian FTSE MIB – by 0.06%.
The Fed’s Beige Book regional survey published on Wednesday showed that forecasts for the US economy have become more pessimistic amid growing concerns about weakening demand.
Economic activity in the country at the beginning of autumn generally slightly increased, but the situation was different in different industries and regions. Four of the twelve Federal Reserve Banks (FRB) said that activity in their districts did not change, and two reported a decrease. Negative factors were higher interest rates and inflation, as well as disruptions in supply chains.
Despite the weakness in the US economy, the Fed, by all accounts, will again raise its key rate by 75 basis points at the November meeting.
Shares of Ericsson AB fall 14.5%, leading the decline in the Stoxx 600 index. The Swedish telecommunications equipment manufacturer’s net profit in the third quarter of 2022 fell by 7% and was worse than the market forecast.
The capitalization of its Finnish competitor Nokia Corp. (SPB: NOK) is down 4.6%, although the company posted a 22% increase in net income last quarter and a 16% increase in revenue.
Pernod Ricard SA drops 1.3% despite the fact that one of the world’s largest alcohol producers reported a 21.7% increase in revenue in the first quarter of fiscal 2023.
Swedish concern Volvo AB, which ranks second in the world in terms of production of trucks, increased its net profit last quarter, but the figure was slightly below market forecasts. The company’s shares are down 4%.
Swedish Match AB’s market value climbed 1.6% on media reports that tobacco maker Philip Morris plans to raise its bid for the company.
The growth leaders among the components of the Stoxx Europe 600 index are the shares of the fertilizer producer Yara International (+5.5%) and the Spanish bank Sabadell (+4.1%).
