Stock indices of the largest countries of Western Europe in the course of trading on Wednesday show a positive mood on the data on weakening inflation in the UK and the eurozone.
The composite index of the largest European companies Stoxx Europe 600 increased by 0.4% to 462.45 points by 12:02 Q2.
German indicator DAX from the market opening rose by 0.2%, French CAC 40 – by 0.6%, British FTSE 100 – by 1.5% (to the maximum for a month). Italian FTSE MIB and Spanish IBEX 35 added 0.15% each.
Consumer prices in the UK in June rose by 7.9% in annualized terms – this is the minimum rise since March 2022. Inflation thus slowed from 8.7% in May.
The consensus forecast cited by Trading Economics had called for inflation to weaken to 8.2% in June.
Consumer price growth in Britain in monthly terms slowed to 0.1% in June from 0.7% in May. Analysts had expected an increase of 0.4%.
Consumer prices in the euro zone rose at a 5.5% annualized rate in June, according to final data. This is the weakest rise since January last year. Inflation was 6.1% in May.
The June figure matched both the preliminary estimate and the average forecast of experts.
Dutch manufacturer of chip equipment ASML Holding NV reduced net profit by 1% in the second quarter, but improved its revenue growth forecast for the current year. Quotes of the company’s shares are up 0.5%.
The price of securities Kering SA soared by almost 6%. The French holding company, which owns famous fashion brands, announced the departure of Gucci CEO Marco Bizzarri, who held the post since 2015. The brand will be led on an interim basis by group managing director Jean-François Palus.
Swedish access control systems maker Assa Abloy increased its second-quarter net profit by 13.3% to 3.57 billion kronor ($349 million) and revenue by 17% to 34.47 billion kronor. Analysts polled by FactSet had on average forecast 4.13 billion crowns and 33.68 billion crowns, respectively. The company’s shares are up 0.2%.
Stock prices of oil producers are also rising: BP Plc and Shell – by 1.1%, TotalEnergies – by 0.5%.
Meanwhile, the value of Volvo is down 1.7%. The Swedish truck maker reported a 5% rise in deliveries in the April-June quarter, but new orders fell 10%.
Antofagasta shares are down 1.1%. The company increased copper production by 2.5% in the second quarter relative to January-March to 149.6 thousand tons. However, the forecast for the whole current year was lowered to 640-670 thousand tons from previously expected 670-710 thousand tons.
European stock indexes are moving in different directions on Friday after the release of the British, German and euro zone statistics as well as the publication of the quarterly results of some companies.
The Stoxx Europe 600 composite index of the region’s biggest companies gained 0.1% to 467.97 points as of 12:35 p.m. ET.
France’s CAC 40 rose 0.2% during the session, Britain’s FTSE 100 gained 0.4% and Italy’s FTSE MIB gained 0.2%. Germany’s DAX and Spain’s IBEX 35 lost 0.2%.
The U.K. Consumer Sentiment Index rose to a fourteen-month high in April (since February 2022) to minus 30 points from minus 36 points in March, according to data from GfK NOP Ltd. Analysts polled by Trading Economics had on average predicted an increase to just minus 35 points.
Meanwhile, retail sales in the country last month fell 0.9% from February, official statistics showed. Analysts on average expected a less significant decline of 0.5%.
In turn, the composite Purchasing Managers Index (PMI) in the euro area in April reached the highest since May 2022. According to preliminary data, this month it was 54.4 points against 53.7 points in March, as expected by the market. In Germany the index rose to 53.9 points from 52.6 points in the previous month, expected 52.7 points.
Thanks to higher prices and strong demand, German automaker Mercedes-Benz posted an adjusted sales margin of 14.8% in the first quarter, above the consensus forecast. Its shares are up 1.4 percent.
Porsche and Bayerische Motoren Werke AG, another German carmaker, are up 0.3% and 0.1%, respectively.
The capitalization of the German SAP SE increases by 0.1%. The world’s largest maker of business management software increased revenue by 10% in the first quarter.
Despite the decline in oil prices, oil companies’ securities rose in price, including TotalEnergies – by 0.6%, BP Plc (SPB: BP) – by 0.1% and Shell – by 0.5%.
Swiss construction materials maker Holcim Ltd. raised its forecast for organic net sales growth in 2023 to more than 6% from 3-5%, but its shares are down 1%.
Tele2 AB stock quotes are losing 2.3%. The Swedish telecoms company cut its net profit to 850 million kronor ($82.4 million) from 2.47 billion kronor a year earlier, worse than the consensus forecast.
Italian luxury clothing and accessories maker Salvatore Ferragamo cut its revenues 6.5% to €277.95 million in January-March. The company’s capitalization decreased by 4.8%.
Investors are waiting for German economic data to be published later on Tuesday.
The Stoxx Europe 600 composite index of the region’s largest companies had risen nearly 1% to 433.12 points by 10:24 a.m. Ksk.
Germany’s DAX stock index rose 0.6%, France’s CAC 40 gained 0.45% and Britain’s FTSE 100 gained 1.55%. Italian FTSE MIB and Spanish IBEX 35 were up 0.4%.
Energy company Uniper and tour operator TUI were the leaders among Stoxx 600 components which rose in price by 12.2% and 6.1% respectively.
In addition, the value of securities of oil companies BP Plc, Shell and TotalEnergies increases by 3.9%, 4.5% and 1.2%, respectively.
In Germany, shares of Adidas (+2.4%), Siemens Energy (+1.4%) and BASF (+1.2%) rose in price.
In France, bank stock prices are rising, including Societe Generale (+1.5%), BNP Paribas (+1.5%) and Credit Agricole (+1.2%).
The stock indices in Western Europe are changing weakly and multidirectionally during the trading on Thursday.
The Stoxx Europe 600 composite index of the largest companies in the region was down 0.16% to 435.51 points by 11:29 a.m.
Germany’s DAX stock index rose 0.01%, France’s CAC 40 rose 0.14%, the British FTSE 100 declined 0.08%, Italy’s FTSE MIB and Spain’s IBEX 35 lost 0.19% and 0.18% respectively.
Investors continue to fear the effects of the slowing world economy and further tightening of the monetary policy of major central banks to curb inflation, writes Trading Economics.
The Federal Reserve (Fed) and the European Central Bank (ECB) are expected to raise key rates again next week to combat inflation, which is still at too high levels.
The Fed is expected to slow the pace of key interest rate hikes to 50 basis points from 75 bps. Analysts expect the ECB to raise rates by 50 bps as well.
Investors, already concerned about the tightening of monetary policy of the Federal Reserve, should prepare themselves for the fact that U.S. interest rates will continue to rise until May 2023, believes chief economist of Goldman Sachs Jan Hatsius. Expect a decline in borrowing costs next year, in his view, it’s not worth it, The Wall Street Journal reported.
The most significant decline in the Stoxx 600 Index is in shares of Swiss locomotive and railcar maker Stadler Rail AG, which are down 4.5%.
Aroundtown S.A., a real estate company, is showing the strongest gains. – up 7.2%.
Shares of Ryanair Holdings PLC are up 1.4%. The Irish low-cost carrier extended its contract with chief executive Michael O’Leary through July 2028.
Western European stock indexes are rising in trading on Tuesday, recovering from a fall the day before.
Investors welcomed the news that Chinese authorities plan to actively encourage vaccination against coronavirus among the adult population. Experts believe that such a measure may prove to be key to the removal of anti-Covids restrictions.
At the same time, the market expects that yesterday’s mass protests in Chinese cities may prompt authorities to relax restrictions. “We don’t assume that China will publicly abandon its zero-tolerance coronavirus policy, but we are hoping for some regional easing,” said Jefferies analyst Mohit Kumar.
The Stoxx Europe 600 composite index of the region’s largest companies was up 0.44% to 439.77 points by 11:00 a.m. Ksk.
Germany’s DAX is up 0.24%, Britain’s FTSE 100 is up 0.88%, France’s CAC 40 is up 0.34%, Italy’s FTSE MIB is up 0.28% and Spain’s IBEX 35 is up 0.14%.
Traders are waiting for the publication of important statistical data from European countries. At 12:00 noon the European Commission is scheduled to publish a composite index of confidence in the euro area economy for November. At 15:00 KSC the German Federal Statistical Office (Destatis) will release a preliminary report on consumer price changes in November.
Meanwhile, inflation in Spain slowed in November to its lowest since January thanks to a slower rise in fuel and electricity prices. Consumer prices, calculated in accordance with EU standards, in the country this month rose by 6.6% year on year, compared with 7.3% in October, showed the preliminary data of the Spanish statistics office INE. Experts polled by The Wall Street Journal, on average, expected a rise of 7.4%.
Shares of British airline easyJet PLC fell by 2.4%. Despite the fact that the air carrier cut its pre-tax loss in fiscal 2022, the figure was worse than experts expected.
French energy company Electricite de France (EDF) SA received a new credit line worth 2.2 billion euros, which is expected to increase the company’s financial flexibility in the coming years. EDF stock quotes are stable in trading in France.
The stock of British pharmaceutical AstraZeneca PLC is up 0.6%. The company announced the purchase of biotech Neogene Therapeutics Inc. for $320 million.
Shares of Dutch semiconductor equipment maker ASM International N.V. (+6.5%), British insurance company Prudential PLC (+5%) and mining company Rio Tinto PLC (+3.7%) are emerging as growth leaders among Stoxx 600 components.
Western European stock indexes are falling in the course of trading on Wednesday, investors took a wait-and-see attitude ahead of the final results of the US congressional elections.
According to preliminary media forecasts, the Republican Party will almost certainly regain the majority in the House of Representatives, while the battle for the Senate continues with approximately equal chances of victory for both parties.
That said, Democrats need 50 seats to win a majority in the upper chamber, while Republicans need 51, as Vice President Kamala Harris, who is from the Democratic Party, has the deciding vote in the absence of a majority in both parties.
The Stoxx Europe 600 composite index of the region’s largest companies was down 0.66 percent at 418.81 points by 11:50 a.m.
The British FTSE 100 stock index was down 0.32%, the German DAX was down 0.76% while the French CAC 40 was down 0.45%. Italian FTSE MIB and Spanish IBEX 35 are losing less than 0.1%.
In addition, market participants are waiting for the data on inflation in the U.S. in October, which may affect the Fed’s policy. The report will be published on Thursday, and analysts polled by Trading Economics on average expect it to indicate a slowdown in inflation in October to 8% from September’s 8.2%.
Also Wednesday, it was reported that inflation in China slowed in October to its lowest level since May. Consumer prices (CPI) rose 2.1% year on year last month after climbing 2.8% in September, while analysts on average had expected a more moderate slowdown to 2.4%.
Compared with the previous month, consumer prices in the PRC rose 0.1% in October after rising 0.3% a month earlier. Experts predicted that the growth rate will remain at the September level.
Shares of adidas AG are down 0.1%. The world’s second-largest sporting goods manufacturer cut its net profit nearly threefold in the third quarter despite a revenue increase and worsened its full-year forecast for the fourth time since the start of the year.
British department store chain Marks & Spencer Group Plc (M&S) was down 6.2%, although it boosted its pretax profit in the first half of fiscal 2023 and reaffirmed its full-year guidance.
Commerzbank AG’s capitalization is also down 6.2%. Germany’s second-largest bank cut net income and revenue in the third quarter of fiscal 2022, though both were better than analysts’ expectations.
The leader of growth among Stoxx 600 components are shares of Evotec SE, a German pharmaceutical company, which fell 9% on news about the company receiving a net loss for the first nine months of this year.
The most active growth in the index is demonstrated by securities of Swedish energy company Orron Energy (+3.8%) and German military-industrial company Rheinmetall AG (+3.6%).
