Most Western European stock indices are declining in trading on Thursday, despite the weakening of geopolitical risks.
The exception is the German indicator.
By 11:30 a.m. Ksk the Stoxx Europe 600 composite index of the largest companies in the region had declined 0.16% to 429.50 points.
The British indicator FTSE 100 lost 0.5%, the French CAC 40 – 0.3%, the Italian FTSE MIB – 0.2%, the Spanish IBEX 35 – 0.3%. Meanwhile, Germany’s DAX stock index rose 0.35%.
Traders continue to evaluate quarterly company reports and statistical data.
Automobile sales in the European Union in October rose 12.2% year on year to 745,855,000, according to the European Automobile Manufacturers Association (ACEA).
The increase was marked the third month in a row, before that the figure was declining for thirteen months in a row.
Shares of ThyssenKrupp AG went down in price by 1.6%. The German industrial group, the largest steelmaker in the country, increased its net profit in the fourth fiscal quarter by 3.4 times and announced that it will pay dividends for the first time in four years.
Britain’s Burberry Group Plc, one of the world’s leading makers of luxury goods, increased pre-tax profits and revenue in the first fiscal quarter and reaffirmed its medium-term outlook. Its securities added 0.05%.
The leader of the fall among the components of the index Stoxx Europe 600 are papers of the British online retailer Ocado Group PLC, which fell in price by 6.1%.
The leaders of the growth are shares of German Siemens AG, which added 6.8%. The company increased its dividend after reporting fourth-quarter earnings that beat analysts’ forecasts.
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%).
European stock indexes are predominantly lower during trading on Wednesday, with the exception of the French indicator.
Investors evaluated the latest inflation statistics and financial performance of companies in the region.
The composite index of the largest enterprises in Europe Stoxx Europe 600 as of 12:04 pm fell by 0.23% to 398.91 points.
German DAX loses 0.2%, British FTSE 100 – 0.35%, Italian FTSE MIB – 0.25%, Spanish IBEX 35 – 0.81%. Meanwhile, the French CAC 40 is up 0.04%.
Consumer prices in the eurozone in September increased by 9.9% in annual terms, according to the final data of the Statistical Office of the European Union.
The figure has been revised down from the previously announced 10%. Analysts did not expect a revision, writes Trading Economics. Inflation, despite a downward revision, is still a record high since the start of the data calculation.
The pace of consumer price recovery in the bloc accelerated from 9.1% in August.
Consumer prices in the UK jumped 10.1% year-on-year in September, according to data from the National Statistics Office (ONS) of the country.
Thus, the indicator returned to the July value, which became the highest in 40 years. Inflation accelerated compared to August, when it was 9.9%.
Analysts polled by Bloomberg, on average, expected a 10% increase in domestic consumer prices last month, as did respondents from Trading Economics.
Shares of Sartorius AG Pfd are among the drop leaders among the components of the Stoxx Europe 600 index. (-14%), supplying solutions for biopharmaceutical research.
Just Eat Takeaway.com is up 0.6% in Amsterdam trading. The Dutch food delivery service reduced the number of orders in the third quarter of 2022 by 11%. Just Eat Takeaway.com said in a report that it recorded positive adjusted EBITDA in the third quarter, returning to profitable levels ahead of schedule.
The Netherlands-based ASML Holding NV, Europe’s largest manufacturer of equipment for the production of chips, in the third quarter of 2022 received a net profit above market expectations. ASML shares are up 6.8%.
Shares of the Swiss Nestle are growing by 0.2%. The largest manufacturer of food and non-alcoholic beverages in the world increased its revenue in January-September by 9.2% and improved its forecast for the current year.
European stock indices are rising on Tuesday due to investors’ optimism about corporate profits, as well as the continued positive market sentiment after the UK’s fiscal policy reversal announced the day before.
The composite index of the largest enterprises in Europe Stoxx Europe 600 as of 12:50 CST rose by 0.23% to 399.4 points. Growth marks the fourth session in a row.
German DAX adds 0.84%, French CAC 40 – 0.32%, British FTSE 100 – 0.52%, Italian FTSE MIB – 1.22%, Spanish IBEX 35 – 0.55%.
Britain’s new Chancellor of the Exchequer, Jeremy Hunt, announced on Monday that he was phasing out much of the fiscal stimulus proposed by former British Treasury Secretary Quasi Kwarteng on 23 September.
In particular, the British government will return to plans to increase the corporate tax rate from 19% to 25% from April 2023, and will also refuse to reduce the tax on dividends, carry out wage reform, freeze alcohol duties and introduce a zero VAT rate. for foreign buyers.
In addition, the lowering of the base income tax rate to 19% from 20%, planned for April, will be postponed, and the program to subsidize homeowners’ electricity costs will be reduced.
Hunt’s proposals are expected to save the British authorities £32bn.
The Bank of England called “incorrect” the report of the Financial Times newspaper that the Central Bank will postpone the sale of government bonds from its portfolio until the market stabilizes.
Statistical data from Germany, published on Tuesday, showed some improvement in the mood of investors and analysts. The index of economic expectations for the next six months in October rose to minus 59.2 points from minus 61.9 points a month earlier. Experts polled by Trading Economics, on average, expected it to fall to minus 65.7 points.
Share quotes of European automakers are rising during trading on data from the European Automobile Manufacturers Association (ACEA), which showed an increase in car sales in the European Union in September by 9.6% compared to the same month in 2021. The increase in sales in the EU was noted in the second month, before that the figure had been declining for thirteen months in a row.
Shares of Volkswagen added 2.1%, Mercedes-Benz – 3.2%, Stellantis – 2.3%, BMW – 1.5%, Renault – 2%.
The value of shares of the French Publicis Groupe SA, one of the world’s largest advertising holdings, increased by 2.2%. Publicis has improved its 2022 organic revenue growth forecast to 8.5% from previously expected 6-7%, noting that it is yet to feel the impact of its customers’ spending cuts.
Swiss Re’s share price edged up 0.8% in trading. The Swiss reinsurer has a preliminary estimate of $1.3 billion in claims related to Hurricane Ian, and is therefore likely to post a net loss of $500 million in the third quarter.
Swiss pharmaceutical company Roche Holding AG shed 1.4%. Roche’s third-quarter revenue fell 8%, but the company reiterated its full-year guidance.
Rio Tinto, which lowered its full-year forecast for refined copper production, is down 1.2%. The company also said that iron ore shipments this year will be closer to the lower end of its forecast.
European stocks rose weakly on Friday ahead of the release of US Department of Labor data on the number of jobs and unemployment for September.
The composite index of the largest enterprises in Europe Stoxx Europe 600 rose by 0.1% to 396.75 points as of 12:30 p.m.
German DAX and French CAC 40 add about 0.1%, British FTSE 100 – 0.12%, Italian FTSE MIB – 0.22%. The Spanish IBEX 35 loses 0.44%.
The consensus forecast of experts surveyed by Market Watch suggests that the number of jobs in the United States last month increased by 275 thousand (315 thousand in August), while maintaining unemployment at 3.7%.
The situation on the US labor market is a key factor influencing the policy of the Federal Reserve System (FRS), and the signals of “cooling” of the market, according to experts, may hold back a further rise in rates by the US Central Bank.
Fed officials speaking on Thursday, however, signaled that it is too early for the Fed to think about a pause in the tightening cycle as inflation eases slowly.
European Central Bank (ECB) officials, meanwhile, are concerned about “self-increasing inflationary pressures” in the eurozone, showed the minutes of the September meeting of the Central Bank, during which all three key interest rates were raised by 75 basis points (bp).
“The nature of the pricing process has changed and inflationary pressures are becoming self-intensifying to the extent that even an expected economic slowdown will not be enough to bring consumer price growth back in line with the ECB’s target,” the minutes released on Thursday show.
German economic statistics released on Friday showed a sharper-than-expected decline in both the country’s industrial output and retail sales in August.
At the same time, the cost of imports to Germany the month before last soared by 32.7% in annual terms – the highest rate since March 1974, against the backdrop of a fourfold jump in gas prices, the country’s Federal Statistical Office (Destatis) reported.
Industrial production in Germany in August decreased by 0.8% compared to July. Analysts polled by Trading Economics had expected a decline of 0.5% on average. Construction volumes decreased by 2.1%, electricity generation fell by 6.1%, production in the processing industry decreased by 0.1%.
Retail sales in Germany in August fell by 1.3% compared to the previous month, while experts had expected a decline of 1.1%.
In Italy, retail sales fell 0.4% in August from a 1.3% rise in July.
Quotes of bank shares rise on Friday due to expectations of further rate hikes by the European Central Bank. Deutsche Bank rose 0.4%, Societe Generale – 0.8%, BNP Paribas – 0.2%, UniCredit – 0.3%.
Shares of Credit Suisse rose 5.8%. The Swiss bank said it was willing to spend about $3 billion to buy back its own bonds to save on interest payments.
Adidas AG lost 1.4% on information that the company is reviewing its partnership with American rapper Kanye West due to growing disagreements between the parties.
Shares of European semiconductor manufacturers STMicroelectronics and Capgemini fell 1% and 1.7%, respectively, after the release of weak preliminary reports from US chip maker AMD.
