stock Europeans closed lower on Thursday, ending the month October with the largest monthly loss of the past year, in the context in which investors analyzed the financial reports of companies, inflation and the long-awaited budget from Britain, reporting CNBC, tells Mediafax.
The pan-European Stoxx 600 closed the session down 1.2%, with all major sectors and stock markets in the red. This brought the monthly losses to 3.4%, according to LSEG data, the weakest performance of this regional benchmark index since October 2023.
Preliminary data released on Thursday showed that inflation in the euro area accelerated to 2% in October, above analysts’ expectations of 1.9% and above the 1.7% figure in September.
These numbers will influence the European Central Bank’s decision to cut its benchmark interest rate, and economists say the chances of a major cut of 50 basis points at the December meeting are high. -now slimmer, with a 25 base cut more likely.
The euro area economy grew more than expected
The release of the data came after economic data was released on Wednesday showing that the euro zone economy grew 0.4% in the third quarter of 2024, above the 0.2% forecast by economists polled by Reuters.
In Britain, housebuilders suffered share price losses as government bond yields rose, and investors expressed doubts about the broad package of tax and loan increases announced in Wednesday’s budget. Some economists argued that this package could be slightly inflationary and could slow the pace of interest rate cuts by the Bank of England.
Charles Campbell, an equity analyst at Stifel, told CNBC that homebuilders are very sensitive to interest rate swings and would be disappointed by the budget, which did not provide much clarity to the sector. However, he said the outlook could improve as third quarter results emerge, interest rates gradually ease and the Labor government details policies to support the sector. .
Shares in Societe Generale closed up 11.3% after the bank reported a 10.5% year-on-year revenue increase in the third quarter and announced management changes, including the appointment of a new chief financial officer .
Companies reporting results include Shell, Stellantis, Maersk, AB Inbev and Carlsberg.
The German DAX index fell by 0.93%, the FTSE 100, of the London stock exchange, by 0.61%, and the CAC 40, of the Paris stock exchange, by 1.05%. Italy’s FTSE MIB index lost 0.64%, and the IBEX 35, of the Madrid stock exchange, by 0.36%.
In the United States, stocks fell for a second straight day, hurt by weaker-than-expected financial reports from major technology companies.
Investors also looked at the latest US economic data, with the consumer price index for personal spending coming in at an annualized 2.1% in September, in line with expectations. This index is the Fed’s preferred inflation indicator.
In the Asia-Pacific, markets fell amid the reaction of investors to the Bank of Japan keeping its benchmark interest rate unchanged, as well as key figures on business activity in China.
2024-11-01 05:32:00
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