The major European stocks closed slightly higher on Wednesday with investors largely digesting quarterly earnings updates, and making cautious moves amid concerns about the outlook for interest rates, and worries about geopolitical tensions amidst reports of an imminent ground invasion of Gaza by Israel.
Traders also waited to see if the European Central Bank would raise rates on Thursday against the backdrop of weakening economic activity and cooling inflation.
Among the major markets in the region, the U.K., and Germany closed modestly higher, with their benchmark indices FTSE 100 and CAC 40 gaining 0.33% and 0.31%, respectively.
Germany’s DAX ended 0.08% up. Switzerland’s SMI advanced 0.23%, and the pan European Stoxx 600 edged up 0.04%.
Among other markets in Europe, Denmark, Netherlands, Poland and Spain closed higher.
Turkiye plunged more than 7% as stocks plunged amid concerns about souring relationship with Israel and the nation’s central bank’s interest rate decision.
Austria, Belgium, Finland, Greece, Iceland and Norway closed weak, while Portugal, Russia and Sweden ended flat.
In the UK market, Lloyds Banking gained about 2.2%. Rio Tinto, Bunzl, BAE Systems, The Sage Group, Antofagasta, Glencore, Pearson, Relx, Auto Trader Group, AstraZeneca, Admiral Group and Ashtead gained 1 to 2%.
Just Eat Takeaway.com plunged more than 6%. Reckitt Benckiser lost about 4% after the maker of Dettol and Lysol cleaning products missed third quarter like-for-like sales expectations.
TUI, ITV, JD Sports Fashion, Segro and Vodafone lost 2 to 4%.
In the German market, Deutsche Bank climbed more than 8% as the lender flagged dividends and buybacks over the next two years after posting better-than-expected third-quarter profit.
Symrise gained about 4%. Hannover Rueck, Munich RE, Beiersdorf, Deutsche Telekom, Henkel, MTU Aero Engines and Allianz ended higher by 1 to 2.2%.
Zalando dropped nearly 6%. Sartorius declined 4.4% and Fresenius Medical Care drifted down 2.8%. Deutsche Post, Vonovia, Siemens Energy, Covestro, Merck, BMW and Infineon lost 1 to 2%.
In Paris, Dassault Systems surged about 8% after the software maker raised its 2023 profit outlook.
Hermes International rallied 2.8%. Sanofi, Air Liquide, L’Oreal and Danone also ended notably higher.
WorldLine tanked nearly 60%. Trading was suspended at the counter following the stock’s plunge after the company cut its revenue forecast for the year as the economic slowdown hurt its business in key markets including Germany.
Teleperformance ended 5% down. Unibail Rodamco and Alstom lost 2.7 to 3.4%. Kering ended 3.4% down after revenue declined in Q3.
On the economic front, Germany’s business confidence improved in October, survey results from the ifo Institute showed. The business climate index rose to 86.9 in October from 85.8 in the previous month. The reading was well above economists’ forecast of 85.9.
Eurozone money supply declined for the third month in a row in September and lending to households and businesses posted weaker growth, the European Central Bank said.
The broad money supply M3 declined 1.2% on a yearly basis in September after a 1.3% fall in August. This was the third consecutive annual decrease.
Market Analysis
Major European Markets Close Slightly Higher
2023-10-25 17:37:50
