PARIS (Reuters) – The main European stock markets are down slightly on Wednesday morning, geopolitical risk in the Middle East taking precedence over economic data and company results, while ASML weighs on the technology compartment.
In Paris, the CAC 40 lost 0.13% to 7,020.75 points around 07:40 GMT. In London, the FTSE 100 fell by 0.59% and in Frankfurt, the Dax lost 0.08%.
The EuroStoxx 50 index fell by 0.33%, the FTSEurofirst 300 by 0.58% and the Stoxx 600 by 0.34%.
Futures contracts on Wall Street also forecast a decline of 0.17% for the Dow Jones, 0.26% for the Standard & Poor’s 500 and 0.31% for the Nasdaq the day after a generally stable session. , but marked by the fall in the semiconductor sector, Washington having said it was considering stopping deliveries to China of processors intended for artificial intelligence.
On the geopolitical front, anger is brewing in the Middle East after a strike against a Gaza hospital which left hundreds of victims according to Palestinian reports, but which Israel reaffirmed on Wednesday was not at the origin. Fears of a conflagration in the region are growing as US President Joe Biden visits Israel this Wednesday.
This threat, as evidenced by the new surge in oil prices, takes precedence over news from China, where gross domestic product (GDP), up 4.9% in the third quarter at an annual rate, exceeded expectations. The good figures for Chinese retail sales, up 5.5% in September, are also relegated to the background.
The publication at 09:00 GMT of monthly consumer prices in the euro zone could, however, bring the economy back into focus, as the major central banks begin to meet next week. In Great Britain, inflation remained at 6.7% year-on-year in September.
In terms of microeconomics, the publications continue with two results particularly awaited on Wall Street, those of Netflix and Tesla.
In Europe, ASML fell 4.31%, the semiconductor equipment manufacturer having announced that it expects almost stable turnover for 2024. TD Cowen emphasizes that the absence of growth is perceived negatively for the sector. The new technologies index on the Stoxx 600 dropped 1.55%.
On the upside, luxury stocks like LVMH (+0.43%), Hermès (+0.21%) and Burberry (+0.36%), exposed to China, are in demand after the economic data published by Beijing this Wednesday.
The German sports equipment manufacturer Adidas gained 3.92% thanks to Tuesday evening’s increase in its turnover forecast for the whole year.
(Writing by Claude Chendjou, edited by Kate Entringer)
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