PARIS (Reuters) – European stock markets ended lower on Thursday, with markets digesting numerous data and results publications before a busy Friday.
In Paris, the CAC 40 lost 0.89% to 7,588.75 points, while the German Dax fell by 0.26% and the British Footsie by 0.11%.
The EuroStoxx 50 index ended the session down 0.35%, compared to 0.39% for the FTSEurofirst 300 and 0.45% for the Stoxx 600.
A burst of results was published in Europe on Thursday, including those of Shell, BNP Paribas and Sanofi. The publication season will continue on Friday, with quarterly figures from Caixabank, Unicredit and Electrolux, in particular.
In the United States, investors are preparing for the results of Apple, Amazon, and Meta Platforms after the close of Wall Street, three groups whose performance largely contributed to the performance of American indices last year.
Markets were also driven by a series of indicators: Eurozone PMI data showed that the slowdown in activity was easing for the third month in a row. However, underlying inflation for January was higher than expected, rekindling fears of more persistent price dynamics than expected.
In the United States, weekly unemployment claims increased more than expected, while the ISM indicator of manufacturing activity is recovering.
The Labor Department’s monthly jobs report, due Friday, will be key to the markets’ economic outlook and could prompt caution.
VALUES
BNP Paribas fell 9.21% after reporting lower-than-expected fourth-quarter results.
Sanofi confirmed on Thursday that it was targeting a decline in its net income per share (EPS) from its activities in 2024 due to the expected increase in its tax rate, which caused the stock to fall by 4.10%.
Dassault Systèmes announced on Thursday that it was targeting an increase in its turnover in 2024 that was lower than analysts’ expectations, which caused the stock to fall by 10.36%.
Pluxee, the former employee benefits division of Sodexo, debuted on the Paris Stock Exchange on Thursday and ended up 15.04%.
Shell announced Thursday a profit of 28 billion dollars (25.9 billion euros) for 2023. The stock gained 2.411%.
Deutsche Bank reported a 30% drop in fourth-quarter profit on Thursday, but the fall was not as big as analysts feared, sending the stock up 2.96%.
Asset manager DWS lost 6.53% after saying on Thursday that it had been the subject of a new search as part of a judicial investigation into alleged greenwashing practices.
Ferrari rose 9.21% after reporting higher revenue and adjusted core profit in 2024 this year, thanks to a full order book.
A WALL STREET
Wall Street is moving forward at closing time in Europe, in the wake of the decline in bond yields.
At closing time in Europe, trading on the New York Stock Exchange indicated an increase of 0.29% for the Dow Jones, compared to 0.53% for the Standard & Poor’s 500, and 0.55% for the Nasdaq Composite.
RATE
US yields declined after jobless claims rose and the ISM manufacturing index rebounded slightly.
At the close of the rate markets in Europe, the yield on the ten-year Treasury fell by 12.6 bp to 3.839%, its lowest since the end of December, compared to a drop of 6.4 bp for the two-year rate, at 4.1653%.
The German ten-year yield fell 2.7 bps to 2.134%, while the two-year yield remained at 2.4165%.
CHANGES
Foreign exchange markets are returning to calm after a week full of monetary policy events, with the dollar falling slightly after the Fed’s latest monetary policy meeting.
The dollar lost 0.15% against a basket of reference currencies, while the euro rose 0.43% to 1.0862 dollars. The pound sterling strengthened by 0.29% to $1.2722.
OIL
Crude is advancing as markets focus on a possible easing of the Fed’s monetary policy this year.
Brent increased by 1.02% to $81.37 per barrel, American light crude (West Texas Intermediate, WTI) increased by 1.08% to $76.67.
(Written by Corentin Chappron, edited by Sophie Louet)
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