The Western European stock market rises during trading on Monday.
The composite index of the largest companies in the Stoxx Europe 600 region increased by 0.27% by 11:32 a.m. and amounted to 392.35 points.
The British stock index FTSE 100 by this time increased by 0.33%, the German DAX – by 0.16%, the French CAC 40 – by 0.09%. The Italian FTSE MIB and the Spanish IBEX 35 added 0.15% and 0.95% respectively.
Market participants, among other things, are waiting for statements from the new British Chancellor of the Exchequer, Jeremy Hunt, who is due to address the House of Commons on Monday.
Meanwhile, three members of the British Parliament from the Conservative Party, as well as some leading businessmen, called on British Prime Minister Liz Truss to resign after a series of controversial economic decisions, reports The Financial Times.
Among the decisions that provoked criticism even from party members of Truss, the publication names, among other things, the appointment of Hunt as head of the Ministry of Finance. During the year, four finance ministers were replaced in the UK. His predecessor as finance minister, Kwazi Kwarteng, announced his decision to step down 38 days after his appointment.
In addition, concerns about the state of the global economy against the backdrop of the situation in Ukraine and rising interest rates in the world remain in the spotlight.
Estimates of the likelihood of a recession in the US economy have risen sharply against the backdrop of high inflation and rising interest rates in the US, according to a regular survey by The Wall Street Journal.
Respondents estimated the probability of a recession in the US in the next 12 months at 63% against 49% in July. The indicator exceeded 50% for the first time since July 2020.
MorphoSys AG, a pharmaceutical company, led the way in the Stoxx Europe 600 index components, climbing 8.6%.
The drop leaders were financial services provider Hargreaves Lansdown PLC, which dropped 6%.
Shares of Nokia Corp. grow by 1.6%. The Finnish telecommunications equipment manufacturer has announced that it has been selected by telecom operator Reliance Jio India as one of the largest equipment providers to support 5G networks.
Papers of Credit Suisse Group AG added 0.7%. A Swiss bank has agreed to pay $495 million to settle claims by the US state of New Jersey in connection with transactions relating to its mortgage-backed securities business.
The stock market of Western Europe is falling on Wednesday morning, while before that the indices were actively growing for three days in a row and ended Tuesday’s trading with a record rise in six months.
The composite index of the largest companies in the region Stoxx Europe 600 by 11:22 qoq fell by 0.9% and amounted to 399.40 points.
The British stock index FTSE 100 by this time fell by 1.25%, the German DAX – by 0.99%, the French CAC 40 – by 0.96%. The Italian FTSE MIB and the Spanish IBEX 35 lost 1.7% and 1.5% respectively.
The negative factor for the European market was the continuing fears about the global recession, which were confirmed in a number of statistical data.
Thus, the index of purchasing managers in the euro area services sector, calculated by S&P Global, amounted to 48.8 points in September, which is the lowest value of the indicator since February 2021, the final data show. Preliminary data indicated a decline in the index to 48.9 points from 49.8 points in August.
The indicator value below 50 points indicates a reduction in business activity in the sector.
In Italy, PMI in the services sector fell to 48.8 from 50.5 points, in Germany – to 45 from 47.7 points, and in France the indicator rose to 52.9 from 51.2 points.
The consolidated PMI in the euro area fell to 48.1 points in September from 48.9 points a month earlier, updating the minimum since January 2021.
In addition, Germany’s foreign trade surplus narrowed to 1.2 billion euros in August from 13.7 billion euros a year earlier and 3.4 billion euros in July.
The volume of German exports adjusted for calendar and seasonal factors in the month before last increased by 1.6% compared to the previous month and amounted to 133.1 billion euros. Imports increased by 3.4% to 131.9 billion euros.
Meanwhile, France’s industrial output jumped 2.4% in August from a 1.6% fall in July. Growth was a record since January 2021, while analysts did not expect a change in the indicator.
Bang & Olufsen A/S shares are down 2.6%. The Danish manufacturer of high-end audio systems, headphones and other electronics posted a net loss in the first financial quarter and cut revenue by 8.2%.
Tesco Plc rises 2.5%, although the UK’s largest grocery retailer cut pre-tax profits in the first half of fiscal year 2023 by 2.8 times and slightly worsened its full-year forecast, noting a change in consumer behavior in an environment of high inflation.
The capitalization of the Finnish airline Finnair is growing by 1.2% on the news that the company carried 890.5 thousand passengers in September, 1.1% more than in August. In September last year, the figure was 298.2 thousand.
The decline leaders among the components of the Stoxx Europe 600 index are the shares of the Swedish bank Avanza Bank Holding (-6.4%) and the French auto parts supplier Faurecia SE (-6.2%). The leaders of growth are papers of cloud technology provider Sinch AB, rising in price by 9.7%.
