On Thursday, the leading stock exchange indicators of Western Europe showed a decline following the key indicators of the US stock market. Investors were anxiously awaiting the final data on the level of consumer prices in America. In addition, market participants continue to analyze corporate profit statements for the third quarter of 2022 from key European companies.
So, by the time of writing, the aggregate indicator of the leading European companies STOXX Europe 600 sank by 0.24% to 419.34 points.
The French CAC 40 fell by 0.59%, the British FTSE 100 lost 0.09%, and the German DAX lost 0.21%.
Leaders of growth and decline
The value of securities of the French outsourcing company Teleperformance SE fell by 26.75%.
The quotes of the German telecommunications company Deutsche Telekom AG sank by 2.3%. At the same time, in the third quarter of fiscal year 2022, Deutsche Telekom increased its net profit by 1.8 times and improved its annual forecast for the third time since the beginning of the year.
The market capitalization of the French banking group Credit Agricole Group decreased by 4.5%. The day before, the bank reported a slight decrease in net profit and revenue in July-September 2022 amid constantly growing volatility of financial markets.
The share price of the German company Knorr-Bremse AG, specializing in the production of braking systems for trucks and commercial vehicles, soared by 10.1%. In the past quarter, the company increased revenue and confirmed the annual forecast.
The value of securities of the German delivery service Delivery Hero SE increased by 10.7% due to the update of the annual forecast of financial indicators.
The quotes of the German energy company RWE AG increased by 2.1%. Over the past 9 months of 2022, the company has doubled its net profit amid the rapid development of operations in the field of renewable energy.
The market capitalization of Luxembourg metallurgical company ArcelorMittal sank by 0.5% on the announcement that in the third quarter its profit declined amid high energy prices and weakening demand.
The share price of the British-Swedish pharmaceutical giant AstraZeneca jumped by 1.4% due to an increase in the annual profit forecast.
The value of securities of the British multinational medical products company Haleon rose by 0.9% on the back of an increase in sales forecast.
Quotes of the Swiss insurance company Zurich Insurance fell by 1.2% The insurer announced that it would receive net damage before taxes worth $ 550 million from Hurricane Ian.
Market sentiment
In addition to studying the quarterly reports of the leading companies in the region, European investors are also closely following the news from the United States on Thursday. So, on Tuesday, voting began there in the midterm congressional elections. Analysts and market participants suggest that Republicans may gain control of the House of Representatives. At the same time, the battle for the majority in the Senate continues with approximately equal chances of victory for both parties.
It is assumed that the Republicans gaining control of the House of Representatives may provoke a reduction in budget spending and a relaxation of regulation previously adopted by the Democratic Party.
At the moment, the counting of votes on the results of the elections continues in America, the final result may become known in a few weeks.
On Thursday evening, the latest data on the October inflation rate in the country will be released in the United States, which will be one of the most anticipated events for investors around the world. Experts predict that by the end of October, the consumer price index in the US fell to 8% (the lowest since February) from September 8.2%. The final data will be a decisive argument in the question of the future course of monetary policy for the US Federal Reserve, which is closely watched by other central banks of the world.
Another factor that weighed on European stock exchanges was the weak results of the last trading session on the US stock market. So, on Wednesday, The Dow Jones Industrial Average index fell by 1.95%, the S&P 500 stock index sank by 2.08%, and the NASDAQ Composite collapsed by 2.48%.
Trading results the day before
On Wednesday, the leading stock exchange indicators of Western Europe closed in the red zone amid expectations of the release of data on the October inflation rate in the United States.
As a result, the aggregate indicator of the leading European companies STOXX Europe 600 sank by 0.3% to 420.34 points.
The French CAC 40 fell 0.17%, the British FTSE 100 lost 0.14%, and the German DAX lost 0.16%.
The value of the securities of the German distribution company Brenntag increased by 1.6%. In the third quarter, its profit significantly exceeded the preliminary expectations of experts. In addition, the management of Brenntag said that it was able to balance logistics chains in Europe and the world due to the impact of increased energy costs.
The quotes of the German sports goods manufacturer Adidas AG increased by 3.7%. At the same time, in July-September, the company reduced its net profit by almost three times, despite revenue growth. In addition, for the fourth time since the beginning of the year, Adidas has worsened its net profit forecast until the end of the year. Earlier, the manufacturer of sporting goods terminated the contract with rapper Kanye West, which became the key reason for the negative financial consequences.
The market capitalization of the British department store chain Marks & Spencer Group Plc collapsed by 3.4%. In the first half of fiscal year 2023, the company increased its pre-tax profit. At the same time, M&S management confirmed the annual forecast, but postponed the decision to resume dividend payments to securities holders.
The share price of Germany's second largest bank Commerzbank AG fell by 7.2%. In the third quarter of 2022, the German lender reduced its net profit by 52% amid problems in the Polish division.
The value of the securities of the German pharmaceutical company Evotec SE fell by 9%. In January-September 2022, the company received a net loss.
The quotes of the Swedish energy company Orron Energy rose by 3.8%.
The market capitalization of the German military-industrial company Rheinmetall AG jumped by 3.6%.
The share price of the Dutch-Belgian supermarket group Ahold Delhaize increased by 1.8%. The day before, the company raised its annual forecast for the third time this year due to a noticeable increase in sales and revenue in July-September.
The value of securities of the Dutch bank ABN Amro increased by 4.4% amid an increase in net profit in the third quarter of fiscal year 2022 by more than twice.
The quotes of the British mobile operator Vodafone Group fell by 2%.
The market capitalization of the German company Vantage Towers, engaged in cell towers, soared by more than 10%.
On Wednesday, European investors also analyzed news from China, where in the past month the level of consumer prices fell to May lows. Thus, in October, the CPI index increased by 2.1% year-on-year after a 2.8% increase in September. At the same time, experts on average expected a slowdown in the inflation rate to only 2.4%.
On a monthly basis, this indicator increased by 0.1% in October after rising by 0.3% a month earlier, while analysts expected that the growth rate would remain at the September level.
