by Claude Chendjou

PARIS (Reuters) – European stock markets ended lower on Tuesday, penalized in particular by automobiles and luxury goods in reaction to news from China, while on Wall Street the indices were in a mixed order, with small variations, before the televised debate on the presidential election and the inflation figures in the United States.

In Paris, the CAC 40 ended down 0.24% at 7,407.55 points. The British Footsie fell 0.78% and the German Dax 0.89%.

The EuroStoxx 50 index lost 0.61%, the FTSEurofirst 300 0.51% and the Stoxx 600 0.49%.

Official data released Tuesday showed that China’s imports rose by just 0.5% in August, while analysts on average had expected a 2% increase, after +7.2% in July.

This statistic confirms other indicators showing weak demand in China, a key market for the luxury sector, which lost 0.49% in Europe during the session.

Stock market indices in Europe were also affected by the automotive sector (-3.83%) following announcements by BMW and Volkswagen in a context of sluggish demand on the Chinese market.

VALUES IN EUROPE

BMW ended down 11.15% after lowering its margin forecasts for this year, dragging down Mercedes-Benz (-4.88%), Volkswagen (-3.38%), Stellantis (-2.84%), Porsche Holding (-2.93%) and Renault (-3.09%).

Centamin soared 22.92% after AngloGold Ashanti announced plans to buy the group for $2.5 billion.

AstraZeneca fell 2.40% after a clinical trial showed its lung cancer treatment did not provide any significant improvement in survival.

Hearing aid manufacturers such as Amplifon (-2.19%), Sonova (-1.46%) and Demant (-3.35%) suffered from Apple’s presentation on Monday evening of new Airpods with hearing aid functions.

Interparfums fell 6.42% after publishing its half-year results.

The Scor share price rose by 6.31%, with specialist media reporting a possible takeover of the reinsurance group by Covéa.

A WALL STREET

At the time of the European closing, the Dow Jones fell by 0.5% and the Standard & Poor’s 500 by 0.01%, while the Nasdaq rose by 0.21%, in a wait-and-see context before the publication on Wednesday of monthly data on consumer prices (CPI) in the United States.

“If we have an inflation report that is too high, it could cause concern, or if it is too low, we could see markets react negatively because it will increase the risk of a recession,” said Erik Knutzen, director of multi-asset investments at Neuberger Berman.

Investors are also looking ahead to the televised debate between Kamala Harris and Donald Trump, scheduled for 0100 GMT, ahead of the US presidential election on November 5. A victory for either candidate in the race for the White House could have significant implications for inflation, regulation and tariffs.

In terms of values, Oracle climbed 12.18% after beating expectations with its quarterly results, while Apple fell 0.5% after the Court of Justice of the European Union (CJEU) confirmed the reimbursement of tax advantages granted by Ireland to the American group.

TODAY’S INDICATORS

Inflation in Germany stood at 2.0% over one year in August, announced the Federal Statistical Office, Destatis, confirming its first estimate for this consumer price index harmonised to European standards (HICP).

CHANGES

The dollar edged up 0.2% against a basket of key currencies ahead of the US CPI and the televised presidential debate.

The euro was down 0.15% at $1.1018 and the pound was down 0.14% at $1.3054.

RATES The wait-and-see attitude was also evident in the bond sector, where the ten-year German Bund, the benchmark for the eurozone, changed little, ending at 2.149% (-2.3 basis points).

In the United States, the ten-year Treasury bond rate fell by 3.2 basis points to 3.6666%, as the market anticipates a first rate cut by the Fed on September 18.

OIL

Oil prices are falling sharply due to concerns over China. OPEC has also again reduced its forecast for global oil demand growth for this year and 2025.

Brent fell by 2.9% to $69.74 per barrel and US light crude (West Texas Intermediate, WTI) by 3.2% to $66.42.

TO BE CONTINUED WEDNESDAY:

(Written by Claude Chendjou, edited by Kate Entringer)

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