PARIS (Reuters) – The main European stock markets showed slight variations on Friday morning as investors digested mixed economic data from China following announcements from the European Central Bank (ECB).

In Paris, the CAC 40 rose 0.13% to 7,593.44 points around 07:25 GMT. In London, the FTSE 100 fell by 0.31%, penalized by the decline in real estate (-1.06%). In Frankfurt, the Dax fell 0.01% the day after its historic high.

The EuroStoxx 50 index increased by 0.27%, the FTSEurofirst 300 fell by 0.02%, while the Stoxx 600 increased by 0.02%.

Over the week as a whole, the CAC 40 is at this stage heading towards a gain of 0.34% and the Stoxx 600 an increase of 0.46%.

Futures contracts on Wall Street predict a decline of 0.06% for the Dow Jones, but an increase of 0.07% for the Standard & Poor’s 500 and 0.33% for the Nasdaq. The American index of technology stocks is supported by Netflix, whose action in Frankfurt rose 4.5%, the group having beaten Wall Street expectations in terms of new subscribers in the third quarter.

Today’s indicators in China show that gross domestic product (GDP) grew 4.6% year-on-year in the third quarter, the weakest pace since the start of 2023.

Data on consumption and industrial production, however, exceeded expectations in September.

The Chinese central bank has also officially launched a swap system aimed at stimulating financial markets with an initial envelope of 800 billion yuan (112.38 billion dollars or 103.65 billion euros).

This latest announcement stimulated stock market indices in China, but in Europe, the market seems to especially remember the GDP figures which confirm the slowdown of the second largest economy in the world.

European stock indices also benefited on Thursday from the prospect of an acceleration in the rate cut by the European Central Bank (ECB) following its monetary policy decision.

“We remain convinced that the ECB will reduce its rates to 1.75% by September 2025, i.e. below the neutral level – in order to maintain the economy,” write Nomura analysts.

The gains recorded on Thursday gave way on Friday to a logical movement of consolidation while the Dax in Frankfurt recorded an unprecedented high, while on Wall Street the Dow Jones recorded its fourth closing record in five sessions.

In terms of values, Essilorluxottica fell 2.50% after reporting a lower than expected increase in its turnover, weighed down by the macroeconomic slowdown in China.

Lagardère (-1%) is losing ground after its third quarter results, while La Française Des Jeux (+0.45%) is doing well thanks to the increase in its annual turnover growth forecast.

Elsewhere in Europe, AB Volvo fell 2.23%, the Swedish truck manufacturer having announced a larger than expected drop in its adjusted operating profit in the third quarter.

British online fashion retailer Boohoo lost 1.19% after announcing the departure of its CEO, John Lyttle.

(Written by Claude Chendjou, edited by Blandine Hénault)

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