PARIS (Reuters) – European stock markets ended down on Friday under pressure from disappointing results and in a wait-and-see context, despite encouraging indicators published in the United States.
In Paris, the CAC 40 fell 1.36% to 6,795.38 points, under pressure from Sanofi, while the German Dax lost 0.3% and the British Footsie 0.86%.
The EuroStoxx 50 index ended the session down 0.87%, compared to 0.87% for the FTSEurofirst 300 and 0.84% for the Stoxx 600.
The results season continues in Europe, and the figures published so far have been mixed: the banking sector disappointed on Thursday, before Sanofi and NatWest added to the pressure on the European indices on Friday.
Several central banks, including the Bank of Japan, the Bank of England and the Federal Reserve will make decisions on their rates next week, and the markets will be attentive to the message sent by the big money makers.
In fact, if rates approach their peak, central banks may have to keep them at a restrictive level longer than markets expect to bring activity and inflation under control.
As such, PCE inflation and American consumer confidence published on Friday were largely in line with estimates, reassuring investors, even if household consumption surprised on the rise.
Markets also remain cautious ahead of the weekend, during which the geopolitical situation could deteriorate, and risk appetite is limited.
VALUES
Sanofi fell 18.93%, at the bottom of the CAC 40 after abandoning its operating margin target for 2025, as part of a plan to list its “Consumer Health” activity on the stock market and increase research spending. and development.
Air France-KLM nibbled 0.35% after hitting a historic low, the group having reported a record profit in the third quarter which, however, narrowly missed analysts’ expectations.
Rémy Cointreau lost 11.29% after lowering its outlook for its 2023-2024 financial year on Friday due to the deterioration of market conditions, particularly in the United States, which weighed on its turnover in the second quarter.
Valeo climbed 3.90% as strikes by the United States Auto Workers Union (UAW) had a negligible impact on the French automotive supplier’s third-quarter outlook and results.
Ubisoft advanced 4.78%, supported by revenue above expectations for the second quarter and after the group maintained its outlook for the fiscal year.
NatWest fell 11.57% after lowering its profit forecast as Britain’s financial watchdog investigated how the bank handled the decision to close the accounts of former Brexit Party leader Nigel Farage .
A WALL STREET
Wall Street is hesitant in a wait-and-see context, with technology stocks nonetheless benefiting from Amazon’s good results published Thursday after the close.
At closing time in Europe, trading on the New York Stock Exchange indicated a decline of 0.4% for the Dow Jones, compared to an increase of 0.18% for the Standard & Poor’s 500 and 1.18%. for the Nasdaq Composite.
RATE
Bond markets remain calm after inflation figures largely in line with consensus, with investors remaining wait-and-see before the Fed’s next monetary policy meeting, scheduled for November 1.
At the close of the European interest rate markets, the ten-year Treasury yield rose 1.9 bp to 4.8642%, while the two-year rate remained at 5.0395%.
The yield on the German ten-year fell by 1.6 bps to 2.834%, while that of the two-year rate fell by 3 bps to 3.1%.
CHANGES
Foreign exchange markets remain calm after the publication of indicators that did not surprise on the upside, and before the Fed meeting next week.
The dollar fell by 0.22% against a basket of reference currencies, while the euro rose by 0.28% to $1.059. The pound sterling gained 0.2% to 1.215 dollars.
OIL
Crude oil advances after the Pentagon announced it had struck targets in Syria, with markets fearing an escalation of the war between Israel and Hamas.
Brent rose 1.18% to $88.97 per barrel, American light crude (West Texas Intermediate, WTI) rose 1.23% to $84.23.
(Written by Corentin Chappron, edited by Kate Entringer)
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