On Wednesday, European stock markets registered a modest decline as investors processed a mix of earnings reports and anticipated the U.K.'s forthcoming autumn budget announcement.
The U.S. dollar gained traction and U.S. Treasury yields hovered near their highest levels in three months, affected by market speculation about the implications of a potential Donald Trump presidency. Concerns exist that Trump's policy approaches, particularly tariffs and immigration restrictions, could drive inflation upward and keep interest rates elevated longer than previously expected.
The STOXX 600 index covering pan-European markets saw a 0.1% decrease to 519.68, following a 0.2% decline on Tuesday. Similarly, Germany's DAX index experienced a slight dip, France's CAC 40 slipped by 0.3%, and the FTSE 100 in the U.K. decreased by 0.2%.
Among individual performances, British bank Lloyds saw a 1% increase in its shares after surpassing profit expectations for the third quarter. Reckitt Benckiser's shares jumped nearly 3% following a less-than-anticipated decline in third-quarter underlying sales.
Homebuilder Barratt Redrow rose 3%, buoyed by encouraging trading figures amid a more stable market landscape. Fresnillo, a miner specializing in precious metals, achieved a 1.2% rise after reporting solid output in the third quarter.
WPP, the advertising giant, experienced a 3.3% gain after revealing a better-than-expected 0.5% increase in third-quarter like-for-like organic revenue. Conversely, L'Oreal's shares fell 3.4% due to a quarterly sales increase that fell short of forecasts, attributed to low consumer confidence in China.
Despite announcing increased sales and orders for the first nine months of the year, Thales' shares dropped by 1.7%. Air Liquide, a supplier of industrial gases, saw a 1.4% decline following third-quarter revenue that met market expectations.
Ipsen’s shares fell 1% despite reporting strong sales momentum in the first nine months of 2024. Deutsche Bank lost 3.2%, as the German financial institution returned to profitability in the third quarter but highlighted credit risks.
Lastly, Atoss Software experienced a 1.2% increase in share value after posting a higher third-quarter profit and revising its full-year 2024 margin outlook upward.
