STOXX 600 hits one-month low as bleak earnings weigh, tech stocks slump
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Europe's blue chips dragged by Melexis, Qorvo, AMD's downbeat updates
Hazy capital outlook weighs on UBS shares
ASMI jumps as guidance hike, Q3 beat suggest no slowdown
Euro zone economy grows quicker than expected, but outlook remains weak
Updates with closing levels
By Ankika Biswas and Pranav Kashyap
Oct 30 (Reuters) -Europe's main stock index fell 1% to its lowest in over a month on Wednesday, as technology and mining stocks led a broader market decline in the aftermath of disappointing corporate earnings and some key economic data.
The pan-European STOXX 600 .STOXX closed 1.3% lower, having hit its lowest level since mid-September during the day, on track for its worst monthly performance in a year.
Benchmark indices on the major regional bourses including those of Germany .GDAXI, France .FCHI, Spain .IBEX and Italy .FTMIB dropped 0.7% to 1.2%.
The tech sector .SX8P, which includes chipmakers, fell over 2%, with analysts noting negative read-across from downbeat forecasts by Belgium's largest semiconductor-supplier Melexis MLXS.BR and U.S. chip firms Qorvo QRVO.O and AMD AMD.O.
Shares in French IT consulting group Capgemini CAPP.PA fell 6% after cutting its 2024 revenue forecast for the second time this year.
The basic resources sector .SXPP snapped a three-day winning streak, with Anglo American AAL.L shedding 4% after BHP's BHP.AX chairman said the company has moved on from acquiring the British miner.
UBS Group's UBSG.S shares dropped 4.5% as investors focused on uncertainty about regulatory changes, the broader outlook and how much spare capital the bank would have going into next year.
This, coupled with a 2.5% fall in Amundi AMUN.PA following the asset manager's expectations of a higher-than-previously-expected tax surcharge, dragged the financial services index .SXFP 2% lower.
Meanwhile, the euro zone economy grew faster than expected last quarter but the outlook was weak on threats of oversized tariffs from a potential Trump presidency in the United States, escalating trade tensions with China and muted consumer confidence.
The biggest surprise came from Germany's third-quarter GDP data which showed Europe's largest economy unexpectedly skirted a recession, but inflation rose more than expected in October.
"Overall, we see little in these data to support market expectations for a 50-bps rate cut in December... Our forecast remains for a 25-bps cut," said Pantheon Macroeconomics' chief euro zone economist Claus Vistesen.
The ECB cut interest rates by 25 bps earlier this month, acknowledging slowing inflation and a worsening economic outlook.
The neck-and-neck race between Kamala Harris and Donald Trump ahead of the U.S. presidential election on Nov. 5 also kept investors on their toes.
Back on the earnings front, Campari CPRI.MI slumped 19% after the Italian spirits group significantly missed third-quarter earnings expectations.
Chip-making equipment supplier ASM International ASMI.AS jumped 5.4% after raising its 2025 forecast range, while Standard Chartered STAN.L rose 4% after the lender's third-quarter profit more than doubled year-on-year.
Swiss industrial company Georg Fischer GF.S jumped 16% on plans to sell its machining solutions business to United Grinding Group.
Reporting by Pranav Kashyap and Ankika Biswas in Bengaluru; Editing by Eileen Soreng and Emelia Sithole-Matarise
Actifs liés
Dernières actualités
Avertissement : Les entités de XM Group proposent à notre plateforme de trading en ligne un service d'exécution uniquement, autorisant une personne à consulter et/ou à utiliser le contenu disponible sur ou via le site internet, qui n'a pas pour but de modifier ou d'élargir cette situation. De tels accès et utilisation sont toujours soumis aux : (i) Conditions générales ; (ii) Avertissements sur les risques et (iii) Avertissement complet. Un tel contenu n'est par conséquent fourni que pour information générale. En particulier, sachez que les contenus de notre plateforme de trading en ligne ne sont ni une sollicitation ni une offre de participation à toute transaction sur les marchés financiers. Le trading sur les marchés financiers implique un niveau significatif de risques pour votre capital.
Tout le matériel publié dans notre Centre de trading en ligne est destiné à des fins de formation / d'information uniquement et ne contient pas – et ne doit pas être considéré comme contenant – des conseils et recommandations en matière de finance, de fiscalité des investissements ou de trading, ou un enregistrement de nos prix de trading ou une offre, une sollicitation, une transaction à propos de tout instrument financier ou bien des promotions financières non sollicitées à votre égard.
Tout contenu tiers, de même que le contenu préparé par XM, tels que les opinions, actualités, études, analyses, prix, autres informations ou liens vers des sites tiers contenus sur ce site internet sont fournis "tels quels", comme commentaires généraux sur le marché et ne constituent pas des conseils en investissement. Dans la mesure où tout contenu est considéré comme de la recherche en investissement, vous devez noter et accepter que le contenu n'a pas été conçu ni préparé conformément aux exigences légales visant à promouvoir l'indépendance de la recherche en investissement et, en tant que tel, il serait considéré comme une communication marketing selon les lois et réglementations applicables. Veuillez vous assurer que vous avez lu et compris notre Avis sur la recherche en investissement non indépendante et notre avertissement sur les risques concernant les informations susdites, qui peuvent consultés ici.
