PARIS (Reuters) – European markets ended mixed on Tuesday after a flurry of earnings and as investors’ agendas remain busy for the rest of the week.
In Paris, the CAC 40 lost 0.31% to 7,598.63 points, while the German Dax rose 0.77% and the British Footsie fell 0.38%.
The EuroStoxx 50 index ended the session up 0.34%, compared to 0.12% for the FTSEurofirst 300 and 0.07% for the Stoxx 600.
European markets closed higher, buoyed by a salvo of encouraging results and with many more quarterly accounts expected after the close.
France suffered in particular from the poor performance of Thales, and investors are preparing for the figures from LVMH and BNP Paribas, two heavyweights of the CAC 40.
Across the Atlantic, the results of Alphabet and Tesla, expected overnight, also prompted caution, while Europe also benefited from the craze for artificial intelligence in 2024, a sector in which Alphabet is present.
Investors also digested the latest comments from the vice-president of the European Central Bank (ECB), Luis de Guindos, who noted that the central bank’s upcoming economic projections will be the key element for the continuation of monetary easing in the eurozone.
The markets will also be attentive to the PMI indicators expected on Wednesday, which will shed light on the dynamics of the European economy, which is in the grip of a slowdown that is expected to worsen over the rest of the year.
US PCE inflation on Friday will also prompt caution ahead of the next Federal Reserve meeting on July 31.
A WALL STREET
Wall Street is up mid-session as investors position themselves for a Fed rate cut in September, while several key indicators are expected this week in the United States.
At the time of the European closing, trading on the New York Stock Exchange indicated a rise of 0.21% for the Dow Jones, against 0.3% for the Standard & Poor’s 500, and 0.59% for the Nasdaq Composite.
VALUES
Thales fell by 6.22% after the publication of its first-half results marked by an increase in operating profit but a warning on the margin of the space segment.
OPmobility (formerly Plastic Omnium) reported on Tuesday a 2.3% increase in its consolidated turnover over the first six months of the year, mainly driven by strong growth in the United States, and gained 8.67%.
Edenred fell 12.78% at the bottom of the Stoxx 600, despite results in line with expectations, with revenue growth slowing in the first half.
Interparfums reported a 16% increase in its second-quarter sales on Tuesday, sending its stock up 18.1%.
Beneteau reported a 31.5% year-on-year drop in first-half revenue at its Boat division on Monday, down 12.38%.
Sartorius jumped to the top of the Stoxx 600 and ended up 7.68%, as rival Dahaner posted better-than-expected second-quarter results.
SAP rose 6.89% as Europe’s largest software maker reported better-than-expected quarterly operating profit on higher revenue and cost cutting.
Porsche said Monday it expects the transition to electric vehicles to take longer than expected and declined 4.82%.
British catering group Compass gained 4.42% after raising its annual profit and revenue forecasts for the second time this year.
Norwegian aluminium producer Norsk Hydro on Tuesday reported an 18% drop in second-quarter operating profit, down 4.66%.
RATE
Yields fell in Europe after statements by Luis de Guindos raised hopes of a rate cut in September.
The yield on the German ten-year fell by 4.4 bp to 2.439%, while that of the two-year rate lost 5.5 bp to 2.766%.
At the close of the rate markets in Europe, the yield on the ten-year Treasury was down 3.1 bp to 4.2291%, compared to 2.7 bp for the two-year rate, at 4.4956%.
CHANGES
The dollar is strengthening ahead of the release of key indicators for the future of the monetary trajectory later in the week.
The dollar gained 0.14% against a basket of benchmark currencies, while the euro lost 0.31% to $1.0855. The pound sterling fell 0.12% to $1.2916.
OIL
Oil prices are falling sharply as negotiations continue over a ceasefire in Gaza.
Brent fell by 1.81% to $80.91 per barrel, while American light crude (West Texas Intermediate, WTI) fell by 2.09% to $76.76.
(Written by Corentin Chappron, edited by Kate Entringer)
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