empty
20.10.2023 08:01 PM
European stocks falling while traders contemplate FED plans

On Friday, the leading stock market indicators in Western Europe declined. Throughout the trading day, traders are closely monitoring the conflict in the Middle East and are keenly avoiding risks. Additionally, investors from around the world are discussing the remarks made by the head of the US Federal Reserve and are awaiting signals of the end of the interest rate hike cycle from major central banks.

This image is no longer relevant

As of the time of writing, the composite index of the largest European companies, Stoxx Europe 600, has dropped by 0.95%. Meanwhile, the French CAC 40 fell by 1.15%, the German DAX lost 1.24%, and the British FTSE 100 declined by 0.68%.

Worst performers

The stock value of Italian automaker Iveco fell by 2.8%.

Shares of the transnational car manufacturer Stellantis declined by 1.9%.

The market capitalization of the French perfume and cosmetics company L'Oreal SA dipped by 0.8%. Notably, in the third quarter, the company increased sales by 4.4% compared to the same period in 2022.

The share price of the British hotel chain InterContinental Hotels Group Plc dropped by 2.2%, even though the company recorded revenue growth per room and increased hotel occupancy in the third quarter.

The stock value of the financial holding UBS decreased by 1.4%. It was recently announced that Roger von Mentlen has been appointed as the chairman of the board of directors for the Swiss subsidiaries of this bank.

Shares of the Italian fashion house Salvatore Ferragamo dropped by 2.8% after reporting a decline in revenue from January to September to 844 million euros from 920.7 million euros a year earlier. The decline in financial results was due to weaker performance in both retail and wholesale sales channels.

The market capitalization of another Italian fashion house, Brunello Cucinelli, jumped by 4.3%. From January to September, the company increased its revenue to 818.4 million euros from 642 million euros for the corresponding period last year. They also raised their annual revenue growth forecast to 20-22% from 19%.

The stock price of the French media conglomerate Vivendi rose by 2.5%, thanks to the publication of positive financial statements. For the first nine months of the current year, the company increased its revenue to 7.12 billion euros from 6.9 billion euros a year earlier.

Market sentiment

Today, investors absorbed news from Europe. According to the European Automobile Manufacturers' Association (ACEA), car sales in the European Union rose 9.2% in the past month compared to September of the previous year. This marks the 14th consecutive month of growth.

The UK's Office for National Statistics (ONS) reported a 0.9% decline in retail sales for the last month compared to August. Analysts had predicted a more modest 0.4% decrease. Year-on-year, retail sales contracted by 1%.

Britain recorded a budget deficit of £14.3 billion in September. On a year-on-year basis, this figure is down by £1.6 billion. Experts had expected a deficit between £18-19 billion.

Meanwhile, Germany's Federal Statistical Office (Destatis) reported a significant 14.7% annual drop in producer prices for September, marking the largest decrease in recorded history. Analysts had predicted a 14.2% decline.

Jerome Powell, the chair of the U.S. Federal Reserve, spoke at the New York Economic Club, emphasizing the steady rise in the U.S. economy. Powell mentioned that if current trends continue, there might be considerations to raise interest rates.

The ongoing conflict between Israel and the Hamas group continues to exert pressure on European stock markets. Tensions in the Middle East have been escalating due to anti-Israel protests in the region.

Israeli media outlets reported that the Israel Defense Forces (IDF) targeted several facilities linked to the Shiite movement "Hezbollah" in Lebanon. Additionally, Israeli forces struck over a hundred targets in the Gaza Strip on Friday night.

Trading outcomes the day before

On Thursday, leading stock indicators of Western Europe sharply declined following hawkish statements from the head of the US Federal Reserve, Jerome Powell. Additional pressure on the markets came from weak corporate reports of key companies in the Euro region.

The composite index of the largest European companies, Stoxx Europe 600, dropped by 1.2%. The French CAC 40 fell by 0.64%, the German DAX lost 0.33%, and the British FTSE 100 decreased by 1.17%.

The value of securities of the British business services group Rentokil Initial plummeted by more than 13% due to a decrease in demand for the company's services in North America.

The stock prices of the Swiss food producer Nestle fell by 3.4%. The company had previously reported slower-than-expected sales growth over the past nine months. Nestle's management stated that the weak financial results were due to high prices that deterred buyers and negatively impacted sales volumes.

The market capitalization of the French automaker Renault dropped by 7.3% due to slowed sales growth against the backdrop of currency devaluation. For the third quarter, the company's revenue increased by 7.6% to 10.51 billion euros. Analysts, on average, had forecasted a figure of 10.34 billion euros. Meanwhile, Renault's car sales from July to September increased by 6.1% to 511 thousand units.

Shares of the Finnish manufacturer of telecommunication equipment for mobile, fixed, broadband, and IP networks, Nokia, dropped by 6.4%. The company's management announced plans to cut up to 14,000 jobs by the end of 2026 as part of a cost-reduction program. In the third quarter, the company's net profit decreased by more than threefold, and revenue by 20%. Both indicators were significantly below analysts' forecasts.

The value of Tesla securities traded on the Frankfurt Stock Exchange fell by 5.12%. Tesla's gross margin for the third quarter did not meet investor expectations.

Share prices of the British digital wealth management service provider, Hargreaves Lansdown, dropped by 4.4% following news of a slowdown in the influx of new clients in the first quarter.

The market capitalization of the German enterprise software manufacturer SAP increased by 5.1%. In the third quarter, the company doubled its net profit and saw a revenue increase of 4%.

The share price of one of the largest European stock exchange operators, Deutsche Boerse AG, increased by 0.3%. From July to September, the company increased its net profit and revenue and also raised its revenue and EBITDA forecasts for the entire current year.

On Thursday, European investors showed a reluctance towards risk sentiments against the backdrop of a rise in the yield of US government bonds to 16-year highs before Jerome Powell's address.

Additionally, traders previously analyzed statistical data from France. In October, the business confidence index in the country fell to 98 points from September's 99 points.

Irina Maksimova,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

US Market News Digest for March 14

Yesterday, the S&P 500 index hit the target level of 5,516 – the same level as June 20, 2024, which is the 23.6% Fibonacci retracement of the entire rally from

Natalia Andreeva 10:34 2025-03-14 UTC+2

Gold hits record high at nearly $3,000 an ounce. Why are investors dumping stocks en masse?

Wall Street indexes down 1%, S&P 500 confirms correction Trump's tariff changes affect sentiment Gold hits all-time high at $2,993.80 an ounce The US dollar fell against

Thomas Frank 09:40 2025-03-14 UTC+2

Clash of corporate giants: Intel stock soars, PepsiCo loses ground

Intel shares jumped following news that TSMC has extended a joint venture to American chip manufacturers. PepsiCo, on the other hand, fell due to a brokerage downgrade. The latest

10:42 2025-03-13 UTC+2

US Market News Digest for March 13

Intel shares saw an uptick following news of a proposal by TSMC to support US chip manufacturers. This development bolstered investor confidence in the semiconductor sector. Meanwhile, PepsiCo shares came

Ekaterina Kiseleva 10:09 2025-03-13 UTC+2

Intel Stocks Soar, PepsiCo Loses Support: Who Will Win the Race?

Intel Jumps After TSMC Unveils JV with U.S. Chipmakers PepsiCo Slips After Broker Downgrade CPI Shows February Inflation Slowed More Than Expected Indices: Dow Down 0.20%, S&P 500 Up 0.49%

Thomas Frank 05:43 2025-03-13 UTC+2

US Market News Digest for March 12

The S&P 500 is trading lower, but it could reverse upward: oscillators signal a turnaround Trade wars escalate: Trump imposes new tariffs, markets respond with losses. The S&P

Irina Maksimova 10:48 2025-03-12 UTC+2

Business vs. Trump: Companies Lose Billions Due to Tariff Policy

The Number of Vacancies in the US Increased to 7.74 Million in January Kohl's Falls Due to Dismal Annual Sales Forecast Airlines Put Pressure on Dow Transports Trump Maintains Tariff

Thomas Frank 10:42 2025-03-12 UTC+2

US Market News Digest for March 11

After a sharp sell-off on Wall Street that sent the Nasdaq 100 into its deepest plunge since 2022, markets are beginning to recover. Futures on the S&P 500 rose

Natalia Andreeva 11:07 2025-03-11 UTC+2

Tesla Loses $125 Billion, Nasdaq Falls 4% as Economic Uncertainty Rises

Crypto Stocks Fall on Low Bitcoin Prices HSBC Downgrades US Stocks S&P 500 Closes Below 200-Day Moving Average Nasdaq Suffering Biggest One-Day Drop Since September 2022 Delta Air Lines Cuts

Thomas Frank 10:34 2025-03-11 UTC+2

US Market News Digest for March 10

US stock futures fell as investors turned to safe-haven assets amid growing concerns over a slowing US economy and trade risks. The Japanese yen strengthened by 0.6%, reaching 147.245

Irina Maksimova 11:37 2025-03-10 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.