On Wednesday, key European markets weakened as investors overlooked recent stimulus measures from China’s central bank and instead concentrated on local economic data, awaiting significant U.S. economic reports for further direction.
Sweden’s central bank, the Riksbank, cut its benchmark rate by 25 basis points to 3.25%, marking the third reduction this year. The bank also indicated the possibility of two additional cuts before the end of the year if inflation and economic activity remain unchanged. A more significant 50 basis-point cut could be considered, with further reductions projected into the first half of 2025.
The pan-European Stoxx 600 declined by 0.11%. The UK's FTSE 100 inched up by 0.17%, while Germany’s DAX and France’s CAC 40 fell by 0.41% and 0.5%, respectively. In contrast, Switzerland’s SMI advanced by 0.83%.
Elsewhere in Europe, market performance was mixed. Belgium, Denmark, Finland, Greece, Iceland, Poland, Portugal, and Sweden closed higher, whereas the Netherlands, Norway, Russia, Spain, and Turkey saw declines, alongside Austria.
In the UK market, Prudential saw a drop of 3.4%. Other notable decliners included BP, Persimmon, Standard Chartered, Diageo, 3i Group, Lloyds Banking Group, Centrica, Vistry Group, Shell, Taylor Wimpey, Barclays, IMI, Kingfisher, Howden Joinery, Barratt Developments, Antofagasta, and Frasers Group, which fell between 1% and 2.5%.
RightMove's shares dropped after its board unanimously rejected a revised takeover offer from Australia’s REA Group, labeling it as undervaluing the company’s prospects.
However, Rentokil Initial, Fresnillo, and Endeavour Mining gained 4.5%, 3.5%, and 3.2%, respectively. Smiths Group, Easyjet, Croda International, Ashtead Group, Compass Group, Anglo American Plc, Halma, Reckitt Benckiser, B&M European Value Retail, Sainsbury (J), and Rolls-Royce Holdings advanced by 1 to 2.3%.
In Germany, BMW shares fell more than 3%, with SAP declining 2.5% amid reports of a U.S. probe into alleged price-fixing. Mercedes-Benz, Sartorius, Qiagen, Volkswagen, Covestro, Brenntag, and Daimler Truck Holding declined by 1 to 1.7%. Conversely, Siemens Healthineers surged nearly 4.5%, and Symrise, Siemens Energy, Puma, Beiersdorf, Fresenius Medical Care, HeidelbergCement, Siemens, and Rheinmetall gained 1 to 2.3%.
In France, TotalEnergies declined by approximately 3.1%. AXA, Stellantis, Bouygues, Renault, Sanofi, Vivendi, Societe Generale, ArcelorMittal, Airbus Group, and Credit Agricole dropped between 1% and 2%. Orange’s shares also fell after the company announced plans to delist its American Depositary Shares from the New York Stock Exchange and the U.S. Securities and Exchange Commission.
On a positive note, Teleperformance climbed nearly 4%, while Edenred gained about 2.3%. Publicis Groupe, Eurofins Scientific, Legrand, and Hermes International advanced by 1 to 2%.
In economic news, French consumer sentiment showed a notable improvement, rising to its highest level in over two years in September. The consumer confidence index, as reported by INSEE, increased to 95 from a revised 93 in August, surpassing the forecasted steady value of 92.
Additionally, the Organisation for Economic Cooperation and Development (OECD) on Wednesday slightly raised its global economic growth projection for this year to 3.2% from the previously forecasted 3.1%, maintaining next year's projection at 3.2% despite significant risks.
