PARIS (Reuters) – The main European stock markets are trading slightly on Tuesday morning, with investors hesitant between the solid results published by certain companies and geopolitical concerns.
In Paris, the CAC 40 rose 0.26% to 7,040.70 points around 07:40 GMT. In London, the FTSE 100 rose 0.33% and in Frankfurt, the Dax rose 0.26%.
The EuroStoxx 50 index increased by 0.21%, the FTSEurofirst 300 by 0.08% and the Stoxx 600 by 0.24%.
Futures contracts on Wall Street foreshadow virtual stability for the Dow Jones, the Standard & Poor’s 500 and the Nasdaq the day after a sharply rising session, marked by a decline in volatility.
The enthusiasm of the financial markets, born Monday from the hope of a negotiated solution in the Middle East with the multiplication of diplomatic efforts, in particular on the part of the United States, whose President Joe Biden is expected in Israel on Wednesday, left place Tuesday for more caution.
Israel continues to shell the Gaza Strip and has warned Iran and Hezbollah, while Iranian Foreign Minister Hossein Amirabdollahian said “preventative” actions could take place in the coming hours.
Added to this is a terrorist attack that occurred Monday evening in Brussels, while France decided to strengthen its security at the border with Belgium.
However, these geopolitical tensions arise in the midst of the publication of quarterly company accounts. In the United States, LSEG data shows that the profit of S&P-500 companies is expected to increase by 2.2% in the third quarter on an annual basis.
On the European stock market, ADP is in the green (+0.56%) after reporting an increase in its passenger traffic in September, returning practically to the level of 2019, before the period of the COVID-19 pandemic. Renault (+0.32%) also benefited from an acceleration in the growth of its eponymous brand in Europe in the third quarter, whose sales jumped 25% year-on-year.
Sodexo, Edenred and Elior are being sought after information according to which commissions on restaurant vouchers could ultimately not be capped.
Rolls-Royce, up 1.63%, is buoyed by the announcement of a plan to cut 2,500 jobs.
On the downside, Ericsson plunged 8.81%. The Swedish telecom equipment manufacturer has warned that it expects the uncertainty weighing on its mobile network activities to persist until 2024, after reporting a drop in its sales in the third quarter. Its competitor Nokia lost 4.05%, while the sector index in Europe lost 0.53%.
In Zurich, the Swiss pharmacy subcontractor Lonza fell 9.25% due to the lowering of its margin target for 2024.
(Writing by Claude Chendjou, edited by Kate Entringer)
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