PARIS (Reuters) – The main European stock markets, apart from London, are down on Thursday morning in a context of risk aversion linked to new Israeli strikes in the center of Beirut and the anticipation of key macroeconomic indicators.
In Paris, the CAC 40 lost 0.81% to 7,514.4 points around 07:35 GMT. In London, the FTSE 100 gained 0.16%, supported by energy stocks. In Frankfurt, the Dax lost 0.44%.
The EuroStoxx 50 index fell by 0.74%, the FTSEurofirst 300 by 0.43% and the Stoxx 600 by 0.62%.
Futures contracts on Wall Street predict a drop of 0.32% for the Dow Jones, 0.39% for the Standard & Poor’s 500 and 63% for the Nasdaq the next day close to balance.
The geopolitical context in the Middle East remains tense, with Israel bombing central Beirut in the early hours of Thursday, killing at least six people, according to Lebanese health officials. US President Joe Biden declared his opposition on Wednesday to strikes on Iranian nuclear sites in response to the salvo of missiles fired by Tehran on Tuesday towards Israeli territory.
In terms of macroeconomic indicators, investors are awaiting, among other things, monthly figures for activity in the services sector in Europe and the United States, as well as an inflation indicator in the euro zone.
The data could impact rate expectations as Bank of England (BoE) Governor Andrew Bailey said on Thursday the central bank could become “a little more aggressive” on borrowing costs if inflation continued to decline.
In the euro zone, traders now estimate a 95% probability of a quarter-point rate cut by the European Central Bank (ECB) on October 17, according to LSEG data. Further monetary easing from the US Federal Reserve (Fed) is also expected in November.
In terms of values, Bouygues fell by 4.41% the day after the presentation of forecasts for its subsidiary Bouygues Telecom, saying it expects Services turnover and 2026 EBITDAaL to show modest growth compared to 2023.
Air France-KLM takes 2.13% while KLM, its Dutch branch, announced Thursday its intention to adopt cost reduction measures.
Tesco advances by 2.39%, the number one British supermarket having raised its annual profit forecast on Thursday.
The SAP share dropped 1.35%, dragging the technology sector (-0.78%) downward, after information according to which the ongoing investigation in the United States for price-fixing conspiracy could be broadened.
(Written by Claude Chendjou, edited by Blandine Hénault)
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