Moscow. The 20th of October. INTERFAX.RU – European stock indices dropped to multi-month lows on Friday.
Pressure on the market comes from increased geopolitical tensions in the world, as well as rising government bond yields and disappointing reports from a number of companies, writes Trading Economics. Investors also assessed the latest statistics and statements by the head of the Federal Reserve System, Jerome Powell, made the night before.
The composite index of the largest European companies Stoxx Europe 600 at the end of trading decreased by 1.36% and amounted to 433.73 points. This is the lowest level since the beginning of the year.
The British FTSE 100 indicator fell by 1.3% (to a two-month low), the French CAC 40 – by 1.5% (to its lowest level in ten months), the German DAX – by 1.6% (to a low since May ), the Italian FTSE MIB – by 1.4% (to a four-month low), the Spanish IBEX 35 – by 1.3% (to the lowest level since the end of March).
The head of the Federal Reserve said that he is carefully studying the latest statistical data, which indicate steady growth in the American economy, and if this situation continues, this may be the reason for further increases in interest rates. He noted that the Fed is acting cautiously and struggling with “old and new” uncertainties. At the same time, the Central Bank is trying to balance the risk of raising interest rates too high with the risk that their too low level will not allow inflation to slow down.
Retail sales in the UK fell by 0.9% in September compared to the previous month, the country’s statistics office reported. Experts on average expected a decline of 0.4%. In annual terms, sales decreased by 1%.
In Germany, in September there was a drop in producer prices of 14.7% in annual terms, according to the statistics agency. This is the strongest decline in the indicator in the entire history of observation, that is, since 1949. The consensus forecast was for a decrease of 14.2%.
Shares of L’Oreal SA fell 1.5% on Friday. The French company increased revenue in the third quarter by 4.4% compared to the same period last year, to 10 billion euros. However, sales in northern Asia did not meet the experts’ forecast due to the weak recovery of the Chinese cosmetics market.
Non-ferrous metals producer Boliden fell 7.2% as the Swedish company’s operating profit in the past quarter was worse than expected.
Husqvarna’s share price fell 8% as the Swiss machinery and tools maker’s revenue fell short of forecasts.
UBS’s market value fell 2.8% on the day. Roger von Mentlen has been appointed chairman of the boards of directors of the Swiss divisions of this bank and its acquired Credit Suisse. UBS also announced plans to legally merge these segments in 2024.
The capitalization of InterContinental Hotels Group Plc decreased by 2.9%. The British hotel chain recorded an increase in revenue per room and an increase in hotel occupancy in July-September. However, the company warned that financial difficulties in the short term will limit its ability to develop the hotel chain.
The price of Salvatore Ferragamo securities decreased by 1.9%. The Italian fashion house decreased revenue in January-September by 8.3% (to 844 million) due to deterioration in both retail and wholesale sales channels.
Meanwhile, another Italian fashion house, Brunello Cucinelli, increased revenue for the same period by 27.5% (to 818.4 million euros) and raised its annual growth forecast to 20-22% from previously expected 19%. The company’s shares jumped 4.8%.
Also, due to positive reporting, Vivendi stock quotes increased by 2.9%. The French media conglomerate increased revenue in January-September to 7.12 billion euros from 6.9 billion euros in the same period a year earlier.
2023-10-20 17:23:00
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