Stock indices of the largest Western European countries are changing weakly and multidirectionally at the beginning of the session on Wednesday.
Investors are assessing the latest data on business activity in the eurozone and waiting for the publication of the U.S. Federal Reserve’s November meeting minutes, which will be held on Wednesday evening.
At the last meeting the Federal Reserve increased the rate by 75 basis points and hinted at the possibility to reduce the rate rise at the next meetings. As experts expect, the protocol will show that the Fed leaders reached a consensus on the need to slow down the rate hike, writes Bloomberg. At the same time, however, there is no consensus among them as to what interest rate cap will lead to the beginning of the decline in economic activity and inflation.
The composite index of the largest companies in the region Stoxx Europe 600 by 10:40 a.m. decreased by 0.09% and was 435.94 points.
Germany’s DAX added 0.01%, France’s CAC 40 gained 0.03% and Britain’s FTSE 100 gained 0.4%. Meanwhile, Italy’s FTSE MIB and Spain’s IBEX 35 are down 0.6% and 0.2%, respectively.
The composite purchasing managers index (PMI) in the euro area in November rose to 47.8 points from 47.3 points in October, showed preliminary data from S & P Global, which calculates the indicator.
The value of the indicator below 50 points indicates a decrease in business activity in the sector. The index in the euro area remains below that mark for the fifth month in a row.
Germany’s composite PMI rose to 46.4 points this month from 45.1 points in October, the highest since August. Nevertheless its value indicates a decline in business activity for the third month in a row.
In France, the composite PMI in November fell to 48.8 points from 50.2 points a month earlier, according to preliminary data. The decline in business activity in the country was recorded for the first time since March 2021.
Share prices of Swiss bank Credit Suisse Group AG fell by 5.2%. The bank published the forecast for the fourth quarter of the current year, according to which it expects the pre-tax loss of $1.6 billion.
Papers of Johnson Matthey, a British chemical company, are falling by 3.1%. The company reported a decline in net profit in the first fiscal year.
Shares of Prosus NV of the Netherlands, which invests in tech companies, rise in price by 1.4%. The company grew revenues in the first fiscal half-year by 9% to $16.5 billion.
The value of United Utilities Group PLC, a British utilities provider, is up 0.1%. The company’s pre-tax profit doubled in the first fiscal year.
German carmaker Volkswagen AG dropped 1.9%. The company reached an agreement with the IG Metall union, which includes 125,000 VW employees, to raise their salaries and pay bonuses of 3,000 euros.
