FRANKFURT (Dow Jones)–Europe’s stock exchanges closed lower on Tuesday. The weak start to the month on Wall Street spoiled the mood. After their holiday on Monday, September only began today for US investors. This also meant that fresh capital inflows into funds were redistributed. Investors withdrew from technology stocks and defensive stocks such as those from the food industry were in demand. The DAX closed 1 percent lower at 18,747 points – although it had reached a new all-time high of 18,991 points in the morning.
The Euro Stoxx 50 fell 1.2 percent to 4,913 points. Unlike in the USA, mining and steel stocks in Europe were even weaker, with their sector index losing 3.3 percent.
US data dominates the week
The ISM industrial index for August, however, took a back seat. As expected, it was presented in the contraction area, but employment and prices were above expectations. This dampened hopes of interest rate cuts. However, the ISM service index on Thursday is more important for the labor market, as most Americans work in this sector. The highlight of the week is the monthly US labor market report on Friday.
Rotation out of technology stocks
Technology stocks were the losers in the sector rotation at the start of the month in the USA. Nvidia in particular was under pressure, with a loss of over 7 percent at the end of trading in Germany. After the latest Nvidia figures, growth hopes had faded. Expectations of US interest rate cuts are also falling.
And September also marks the start of the most seasonally volatile period on the stock market, so there is no need to go into a very volatile industry, it was said. Intel and Taiwan Semiconductor fell by an average of 6 percent. ASML lost 4.4 percent. In the DAX, Infineon was the day’s loser with a loss of 4.7 percent.
Investors also withdrew from other thematic funds such as “armaments”. Renk fell 6.8 percent, Hensoldt 3.3 percent and Rheinmetall 1.4 percent. Symrise was the day’s winner with a gain of 1.9 percent.
Cost savings at VW are not a selling point
Car stocks also tended to be weak. VW shares slipped by 1.2 percent. The tightening of the austerity measures is not seen as a reason to buy. DZ Bank said that the market’s profit estimates for 2024 and 2025 could fall.
Costs for restructuring and personnel measures could be a burden, and the news also implies a weak development of the VW brand. Other car stocks such as Mercedes and BMW fell by up to 1.9 percent, while Stellantis lost 2.8 percent.
Banks across Europe slipped into the red. Commerzbank fell by 2.4 percent, Deutsche Bank by 1.6 percent. In trading, it was pointed out that the interest margin is likely to fall with the upcoming ECB interest rate cuts. In addition, many institutions have so far hardly made any provisions for real estate loans.
Thyssenkrupp lost 4.1 percent due to the weak steel stocks across Europe, and as expected they also dropped out of the Stoxx 600 index. Salzgitter also fell by 3.1 percent, Arcelormittal by 5.2 percent.
Ubisoft’s share price slide continued on Tuesday. The shares lost 5 percent. In addition to the increasingly skeptical growth expectations for live service games, the company was expelled from the Stoxx 600 index and received negative analyst reviews from UBS and JPM.
Bucking the trend, Watches of Switzerland rose by 6.3 percent. Here, everything is going according to management’s expectations, which again confirmed the forecast for the 2025 financial year. According to RBC analysts, this dispelled existing concerns that a reduction had been expected.
Swiss Life also climbed by 1.1 percent. The half-year results were convincing, but no share buyback was announced. UBS, among others, had expected a volume of 300 million francs.
=== Index closing development development development . absolute in % since . Start of the year* Euro-Stoxx-50 4,912.52 -60.55 -1.2% +8.7% Stoxx-50 4,512.46 -44.79 -1.0% +10.2% Stoxx-600 519.84 -5.10 -1.0% +8.5% XETRA-DAX 18,747.11 -183.74 -1.0% +11.9% FTSE-100 London 8,298.46 -65.38 -0.8% +8.2% CAC-40 Paris 7,575.10 -71.32 -0.9% +0.4% AEX Amsterdam 908.85 -11.84 -1.3% +15.5% ATHEX-20 Athens 3,511.86 -8.51 -0.2% +12.5% BEL-20 Brussels 4,147.67 -32.66 -0.8% +11.9% BUX Budapest 72,982.36 +193.13 +0.3% +20.4% OMXH-25 Helsinki 4,655.47 -39.91 -0.8% +3.6% ISE NAT. 30 Istanbul 11.050,47 -107,80 -1,0% +37,8% OMXC-20 Kopenhagen 2.763,82 -5,74 -0,2% +21,0% PSI 20 Lissabon 6.773,88 -67,06 -1,0% +4,9% IBEX-35 Madrid 11.279,20 -116,10 -1,0% +11,7% FTSE-MIB Mailand 33.863,43 -457,17 -1,3% +13,0% OBX Oslo 1.308,45 -28,59 -2,1% +9,6% PX Prag 1.591,32 -15,64 -1,0% +12,5% OMXS-30 Stockholm 2.565,78 -24.20 -0.9% +7.0% WIG-20 Warsaw 2,409.50 -46.57 -1.9% +2.8% ATX Vienna 3,651.56 -84.33 -2.3% +8.1% SMI Zurich 12,348.19 -103.29 -0.8% +10.9% *based on the previous day’s closing price Bond market last absolute +/- YTD German ten-year yield 2.27 -0.06 -0.30 US ten-year yield 3.86 -0.05 -0.02 CURRENCIES last +/- % Tue, 8:26 Mon, 17:10 % YTD EUR/USD 1.1041 -0.3% 1.1057 1.1070 -0.0% EUR/JPY 161.07 -1.0% 161.70 162.69 +3.5% EUR/CHF 0.9391 -0.4% 0.9412 0.9424 +1.2% EUR/GBP 0.8427 +0.1% 0.8430 0.8417 -2.9% USD/JPY 145.91 -0.7% 146.23 146, 97 +3.6% GBP/USD 1.3104 -0.3% 1.3115 1.3153 +3.0% USD/CNH (Offshore) 7.1231 +0.1% 7.1231 7.1165 -0.0% Bitcoin BTC/USD 57,786.35 -2.1% 58,931.25 58,708.25 +32.7% ROHOEL last VT-Settlem. +/- % +/- USD % YTD WTI/Nymex 70.71 73.55 -3.9% -2.84 -0.4% Brent/ICE 74.08 77.52 -4.4% -3.44 -1.7% GAS VT-Settlem. +/- EUR Dutch TTF 37.03 38.59 -4.0% -1.56 +16.1% METALS last previous day +/- % +/- USD % YTD Gold (Spot) 2,486.51 2,499.79 -0.5% -13.29 +20.6% Silver (Spot) 27.96 28.73 -2.7% -0.77 +17.6% Platinum (Spot) 910.28 930.03 -2.1% -19.76 -8.2% Copper Future 4.02 4.12 -3.1% -0.13 +1.9% YTD based on previous day’s closing price ===
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(END) Dow Jones Newswires
September 03, 2024 12:08 ET (16:08 GMT)
