European stock indexes are down on Monday after the release of German economic confidence data and the first of many corporate reports this week.
The Stoxx Europe 600 composite index of the region’s largest companies lost 0.01% as of 12:33 p.m. and stood at 468.94 points.
France’s CAC 40 and Spain’s IBEX 35 were down 0.2%, Germany’s DAX and Britain’s FTSE 100 – 0.1%, Italy’s FTSE MIB – 0.9%.
On Friday all indicators, with the exception of the IBEX 35, were up.
Markets remain uncertain about the prospects for the global economy and fear further tightening of monetary policy, writes Trading Economics. In addition, investors this week expect the publication of performance indicators of banks Barclays, Santander, Deutsche Bank and UBS and giants of the consumer sector Nestle and Unilever.
Shares of the German software developer SAP go down in price by 1.3%. Also the leaders of reduction in Germany are shares of microprocessor manufacturer Infineon Technologies (-1%), stock exchange Deutsche Boerse (-1%), communications operator Deutsche Telekom (-0.9%), energy equipment manufacturer Siemens Energy (-0.9%) and energy company RWE (-0.8%).
In France, the market value of Vivendi media company declined by 1.9%, while cosmetics manufacturer L’Oreal – by 1.6%.
Oil companies followed the decline in oil prices, including TotalEnergies (SPB: TOT) down 0.4%, BP Plc (SPB: BP) – 0.7%, Shell (SPB: RDS.A) – 1%.
Endesa’s share price dropped 1.7% to €19.73. Analysts at RBC downgraded the fair value of the Spanish energy company to €19.5 from €20.
Meanwhile, the index of German business confidence in the country’s economy, calculated by the Ifo economic research institute, rose to 93.6 points in April from 93.3 points the previous month. This is the highest value since February 2022. The indicator has been rising for six months in a row. However, in April it failed to meet the expectations of analysts, who predicted an average increase to 94 points.
Shares of Swiss Credit Suisse are up 1.8%. The bank, which UBS agreed to buy, more than quadrupled its revenues in the first quarter and ended it with a net profit against a loss a year earlier.
Royal Philips NV of the Netherlands, which produces consumer goods and medical equipment, increased its net loss 4.4 times in January-March, but its sales and adjusted EBITDA exceeded experts’ forecasts. The company’s shares surged 11%.
The shares of the German Software AG rose by more than 49% on the news about the purchase of the software developer by the investment company Silver Lake for 2.2 billion euros. The estimate includes a 53% premium to the closing price level on April 20.
In addition, shares in the automotive sector go up: Mercedes-Benz Group up 0.9%, Bayerische Motoren Werke AG (SPB: BMW) up 0.8%, Stellantis up 2.6%, Renault up 0.4%, Continental up 1%, Michelin up 0.6%.
Banks are also rising, including BNP Paribas, up 1.1%; Credit Agricole, up 0.9%; Societe Generale, up 0.8%; Barclays, up 0.7%; Deutsche Bank, up 0.9%; and Unicredit, up 1.5%.
