Optimism Drove European Markets to Weekly Gains

Bridgette Randall
03 Feb, 2023
Frankfurt

European markets closed lower on Friday following weaker-than-expected earnings from the U.S. tech companies and strong U.S. jobs report. 

The Euro Area private sector activities expanded in January after shrinking for seven months in a row, the latest survey from S&P Global showed on Friday. 

The PMI Composite Output Index for January was revised higher in the final estimate to 50.3 from the previous estimate of 50.2, and moved from 49.3 in December. 

The rebound in total activities was driven by resurgence in services but manufacturing contracted in the month. 

The rebound in activities after seven months raised hopes that the currency block's economy may be able to avoid a recession. 

 

European Indexes Extend Weekly Gains 

Benchmark indexes were under pressure in Germany but advanced in France and the UK. 

The DAX index decreased 0.2% to 15,476.43, the CAC-40 index increased 1.0% and the FTSE 100 index advanced 1% to 7,901.80. 

For the week, the DAX index increased 1.8%, the CAC-40 index rose 1.5% and the FTSE 100 index advanced 1.6%. 

The euro edged down to $1.08, the British pound eased to $1.22 and the Swiss franc edged lower to 92.54 U.S. cents. 

Crude oil advanced in early trading after the U.S. jobs data showed a sharp jump in payrolls in January raising hopes of stable demand in the world's largest economy. 

Brent crude oil declined $2.35 to $79.82 a barrel and the Dutch TTF Spot price increased 0.9% to Є57.80 per MWh. 

 

Europe Movers 

TomTom NV increased 4% to €7.26 after the mobility device maker reported narrower loss in its latest quarter. 

Revenue in the fourth quarter rose 21% to €139 million and net loss narrowed to €8.8 from €38.8 million a year ago.  

For the full-year 2022, revenue increased 5.7% to €536 million and loss expanded 9% to €102.7 million. 

The company guided 2023 revenue in the range of €540 million and €580 million. 

Sanofi SA declined 1.8% to €85.14 after the French drugmaker estimated 2023 revenue growth in "low single-digit" in constant currency. 

Net sales in the fourth quarter increased 7.3% to €10.7 billion and net income rose 29.1% to €1.46 billion and diluted earnings per share rose 28.9% to €1.16. 

Ferrari NV declined 1.8% to €242.10 after the Italian sports car maker reported quarterly results. 

Shipments in the fourth quarter increased 13% to 3,327 and for the full-year 2022 rose 19% to 13,221. 

Revenue in the fourth quarter increased 17% from a year ago to €1.4 billion and net income rose 3% to €221 million. 

Diluted earnings per share increased to €1.21 from €1.16 a year ago. 

In full-year 2022, revenue increased 19% to €5.1 billion and net income rose 13% to €939 million and diluted earnings per share increased to 13% to 5.09 from €4.50 a year ago.   

Julius Baer Gruppe AG increased 2.8% to 63.42 Swiss francs after the Swiss private banking group reported better-than-expected quarterly results.

 Assets under management declined 12$ to 424 million Swiss francs and net new inflow was 9 billion Swiss francs in the year 2022. 

Operating income declined marginally to 3.9 billion Swiss francs and net profit attributable to shareholders fell 12%, to 950 million Swiss francs. 

Earnings per share decreased 10% to 4.56 Swiss francs and the company proposed to pay a dividend of 2.60 Swiss francs despite the fall in earnings.