STOXX erases China rally, autos drag

Reuters

STOXX erases China rally, autos drag

2024 10월 3 일, 오전 8:38 GMT

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STOXX 600 down 0.8%

Autos top fallers

Eurozone PMI points to contraction

Wall Street futures down

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STOXX ERASES CHINA RALLY, AUTOS DRAG

European shares got off to a risk-averse start on Thursday with no sector trading in positive territory and auto stocks leading the way lower, as investors remained downbeat over the profit outlook for the troubled sector.

The STOXX 600 .STOXX fell 0.8% to an over 1-week low, erasing all the China-rally gains that lifted the region-wide index to a new record peak. Auto & parts .SXAP slipped over 2% to their lowest since November 2023.

Stellantis STLAM.MI was the biggest faller across autos, down over 4% to a new low, as analysts kept slashing their forecasts following Monday's warning that has raised questions on dividend and buyback potential.

"We got wrong-footed on STLA, being too slow to acknowledge its U.S. inventory issue and eroding EU/US market shares," said Barclays, adding it saw no signs of recovery until H1 2025.

EU's 27 member states are set to vote on Friday over final tariffs on imports of electric vehicles made in China.

Concerns over a possible escalation of tensions in the Middle East supported defence stocks. SAAB SAABb.ST and Rheinmetall RHMG.DE both rose around 1%. A gauge of euro zone equity .V2TX volatility hovered at 4-week highs.

In macro, a survey showed euro zone business activity slipped back into contraction inSeptember, although the downturn was not as steep as initially thought.

Here is your snapshot:

(Danilo Masoni)

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EARLIER ON LIVE MARKETS:

EUROPEAN FUTURES EASE, TESCO UPS PROFIT FORECAST CLICK HERE

PMIS TO PAVE THE WAY FOR RATE CUTS CLICK HERE

EU open https://tmsnrt.rs/3ZNCMCG

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