PARIS (Reuters) – The main European stock markets fell on Thursday morning with the sharp decline in the automotive sector, shaken by fears of a price war after the disappointing quarterly results of Tesla, while the approach of central bank meetings encourages also with caution.
In Paris, the CAC 40 lost 0.43% to 7,516.79 points around 08:10 GMT. In London, the FTSE 100 fell 0.16% and in Frankfurt, the Dax fell 0.84%.
The EuroStoxx 50 index fell by 0.44%, the FTSEurofirst 300 by 0.27% and the Stoxx 600 by 0.38%.
Futures contracts on Wall Street also foreshadow a decline, of 0.56% for the Dow Jones, 0.71% for the Standard & Poor’s 500 and 0.93% for the Nasdaq the day after a decline of 2 % of Tesla. The American automaker still lost 4.4% in off-session trading following the publication of its quarterly results.
In Europe, the automotive index (-3.14%) shows the biggest drop in the Stoxx 600 with Renault in particular (-6.73%) at the bottom of the CAC 40. The diamond group is heckled in Stock market despite a 29.9% increase in turnover in the first quarter amid fears of a price war, Tesla’s Model 3 now being at the same price level as the new Mégane.
Stellantis fell by 4.44% and Volkswagen by 3.22%.
The banking sector (+0.31%), one of the few sectors on the rise, offers support to the indices.
In luxury, L’Oréal is resisting the downward trend with a gain of 0.67%, following the publication of organic sales growth of 13% in the first quarter. Kering (-0.82%), Hermès (-0.07%) and LVMH (-0.1%) are in the red.
Laboratory equipment maker Sartorius plunged 10.05% after reporting a 13.2% drop in first-quarter revenue amid slowing demand with the end of the coronavirus pandemic. COVID-19.
Nokia lost 2.85% due to operating profit falling short of market expectations.
On the monetary policy side, Klaas Knot, a member of the European Central Bank’s Governing Council, said on Thursday that he was “uncomfortable” with the current market forecast that anticipates a spike in the deposit rate of the European Central Bank. ECB at around 3.85% vs. 3% currently.
Investors expect further interest rate hikes in the United States, the euro zone and the United Kingdom, of at least 25 basis points in about two weeks.
(Written by Claude Chendjou, edited by Bertrand Boucey)
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