European Markets Steady Amid Mixed Quarterly Earnings

Bridgette Randall
25 Oct, 2023
Frankfurt

European markets hovered near the flatline, and earnings releases picked up pace.

Benchmark indexes in Paris and Frankfurt lacked direction, and the index in London hovered near the flatline after resource stocks edged higher.

The European Central Bank is set to announce its rate decisions on Thursday, and investors are anticipating policymakers to leave rates unchanged.

Crude oil prices lacked direction in nervous trading, and Israel stepped up its bombing campaign ahead of its ground invasion of Gaza.

The Gaza health ministry said at least 700 people, mostly civilians, were killed in an overnight bombing raid.

United Nations Security Council Secretary General Antonio Guterres called for an "immediate humanitarian ceasefire."

Guterres called the attack and kidnapping rampage on October 7 carried out by Hamas "appalling" and stressed that it “cannot justify the collective punishment of the Palestinian people. Excellencies, even war has rules.”

Israeli officials expressed their outrage in social media posts, and Israel's representative to the United Nations, Gilad Erdan, said Israel will refuse visas to United Nations officials, according to Israeli media.

 

Europe Indexes and Yields

The DAX index decreased 0.2% to 14,855.62, the CAC-40 index fell 0.3% to 6,875.12, and the FTSE 100 index eased 0.1% to 7,383.05.

The yield on 10-yetrar German bonds increased to 2.85%, French bonds traded higher to 3.49%, the UK gilts edged up to 4.57%, and Italian bonds inched higher to 4.89%.

The euro hovered near a three-month low at $1.05, the British pound at $1.21, and the U.S. dollar at 89.62 Swiss cents.

Brent crude increased $0.17 to $88.25 a barrel, and the Dutch TTF natural gas edged lower by €0.37 to €48.89 per MWh.

 

Europe Stock Movers

Deutsche Bank AG increased 6.5% to €10.12 after the German bank posted better-than-expected third-quarter results.

The bank also announced its plans to launch its stock repurchase plan and pay dividends.

Worldline SA plunged 57% to €9.78 after the French payment services provider lowered its full-year growth estimate.

The payment services provider added that it has severed relationships with several merchants "in light of the increase in cybercrime."

The company lowered its organic sales growth for 2023 to between 6% and 7% from the previous estimate of between 8% and 10%.

Worldline also forecasted the 2023 operating margin before depreciation and amortization to decline 150 basis points from the previous estimate of an increase of 100 basis points.

Reckitt Benckiser Group Plc declined 4.9% to 5,628.0 pence after the household products maker reported weaker-than-expected comparable sales in the third quarter.

Beiersdorf AG added 1.4% to €123.80 after the maker of Nivea-branded household products raised its full-year sales estimate.

Essentra Plc decreased 4.5% to 141.20 pence after the maker of essential products forecasted full-year adjusted profit near the low end of its estimate.

Dassault Systemes SE rose 8.3% to €37.86 after the French software developer raised its annual profit outlook.

Kering SA fell 3.6% to €394.15 after the luxury products maker reported a decline in revenue in the third quarter.

Fresnillo Plc eased 0.9% to 524.80 pence after the precious metals miner reported a decline in gold and silver output.