PARIS (Reuters) – The main European stock markets are without a clear direction on Tuesday morning but the trend is slightly optimistic in the wake of the record closing of two of the three indices on Wall Street against the backdrop of the first encouraging quarterly results published by companies.
In Paris, the CAC 40 lost 0.37% to 7,574.14 points around 07:50 GMT, penalized in particular by the European luxury compartment (-0.33%). In London, the FTSE 100 dropped 0.12%, pulled down by energy stocks. In Frankfurt, the Dax rose 0.61%.
The EuroStoxx 50 index increased by 0.04%, the FTSEurofirst 300 by 0.28% and the Stoxx 600 by 0.18%.
Futures contracts on Wall Street forecast an increase of 0.15% for the Dow Jones, 0.03% for the Standard & Poor’s 500 but a decrease of 0.09% for the Nasdaq following the unprecedented levels reached by the first two indices. The Dow Jones notably closed for the first time above the symbolic threshold of 43,000 points.
According to analysts, the profits published by the banks, in view of the first results, reinforced the hope that strong quarterly could allow the stocks to continue their strong progression by the end of the year.
Third-quarter year-over-year profit growth for S&P 500 companies is estimated at 4.9%, according to data compiled by LSEG on Friday.
The corporate publication season continues this Tuesday with Bank of America, Goldman Sachs, Citigroup, Johnson & Johnson and United Airlines, while in Europe LVMH, world number in luxury, is expected after the close in Paris.
Ericsson jumped 8.99%. The Swedish telecom equipment manufacturer published operating profit and sales above expectations on Tuesday, thanks to a rebound in demand for 5G equipment in North America. Its Finnish competitor, Nokia, takes 1.62%, while the telecoms sector (+1.39%) and new technologies (+0.58%) are also doing well.
On the downside, the oil and gas sector (-2.19%) is losing ground in a context of concern over demand for crude oil and easing fears of a worsening of tensions between Israel and Iran. BP, Repsol, Eni, Galp Energia and OMV fell 1.7% to 3.3%, while TotalEnergies, which reported on Tuesday a European refining margin indicator falling in the third quarter, dropped 3.56%. .
(Written by Claude Chendjou, edited by Blandine Hénault)
Copyright © 2024 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
