Major European Markets Close Weak

The major European markets closed weak on Wednesday as investors looked past recent stimulus announcements by the Chinese central bank and focused on regional economic data and awaited some crucial economic reports from the U.S. for directional clues.

Sweden’s central bank reduced its benchmark rate by a quarter point and hinted at two more cuts this year as policymakers focus on economic activity.

The executive board of Riksbank reduced the policy rate by 25 basis points to 3.25%. This was the third reduction this year.

Suggesting additional easing, the bank said the policy rate may also be cut at the two remaining policy meetings this year, if the outlook for inflation and economic activity remains unchanged.

A cut of 50 basis points is possible at one of these meetings, the bank said. Further, the forecast indicates one or two further rate reductions during the first half of 2025.

The pan European Stoxx 600 ended down 0.11%. The U.K.’s FTSE 100 gained 0.17%, Germany’s DAX and France’s CAC 40 lost 0.41% and 0.5%, respectively. Switzerland’s SMI gained 0.83%.

Other markets in Europe ended mixed. Belgium, Denmark, Finland, Greece, Iceland, Poland, Portugal and Sweden ended higher.

Netherlands, Norway, Russia, Spain and Turkiye closed weak, while Austria ended weak.

In the UK market, Prudential dropped 3.4%. 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 ended down 1 to 2.5%.

RightMove shares dropped after its board unanimously turned down a revised takeover offer from Australia’s REA Group, saying the increased proposal continues to be unattractive and materially undervalues the company and its future prospects.

Rentokil Initial, Fresnillo and Endeavour Mining climbed 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 gained 1 to 2.3%.

In the German market, BMW ended lower by more than 3%. SAP closed down 2.5% after reports that the software developer is being probed by U.S. officials for alleged price-fixing.

Mercedes-Benz, Sartorius, Qiagen, Volkswagen, Covestro, Brenntag and Daimler Truck Holding lost 1 to 1.7%.

Siemens Healthineers rallied nearly 4.5%. Symrise, Siemens Energy, Puma, Beiersdorf, Fresenius Medical Care, HeidelbergCement, Siemens and Rheinmetall gained 1 to 2.3%.

In the French market, TotalEnergies ended lower by about 3.1%. AXA, Stellantis, Bouygues, Renault, Sanofi, Vivendi, Societe Generale, ArcelorMittal, Airbus Group and Credit Agricole lost 1 to 2%.

Shares of telecom major Orange drifted down as the company has decided to voluntarily delist its American Depositary Shares from the New York Stock Exchange and with the U.S. Securities and Exchange Commission or SEC.

Teleperformance climbed nearly 4%. Edenred gained about 2.3%. Publicis Groupe, Eurofins Scientific, Legrand and Hermes International advanced 1 to 2%.

On the economic front, French consumer sentiment strengthened to the highest level in more than two years in September, survey results from the statistical office INSEE showed on Wednesday. The consumer confidence index rose to 95 from revised 93 in August. The score was forecast to remain unchanged at August’s initially estimated value of 92.0.

The Organisation for Economic Cooperation and Development on Wednesday raised the global economic growth projection for this year and retained the outlook for next year despite significant risks.

The Paris-based think tank forecast the global economy to grow 3.2% this year, which is slightly faster than the 3.1% predicted earlier. The projection for next year was retained at 3.2%.

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