European Markets Extend Losses to Fourth Day Amid Mixed Earnings

Bridgette Randall
23 Oct, 2024
London

Stock market indexes in Europe edged lower and extended this week's losses as investors reviewed a fresh batch of earnings. 

Benchmark indexes in Paris, London, and Frankfurt edged lower, gold traded at a new high, and crude oil prices rebounded for the third day in a row. 

Investors are looking forward to the release of the UK's autumn budget as the recently elected Labor government releases its first budget. 

The government is struggling to balance its spending priorities while keeping additional borrowing low, as the national debt hovers near record high. 

The UK's public sector net debt was £2.55 trillion at the end of August, about 92% of GDP, according to the latest data available from the Office for National Statistics. 

 

Europe Indexes and Yields

The DAX index decreased by 0.4% to 19,347.66; the CAC-40 index fell by 0.8% to 7,474.65; and the FTSE 100 index decreased by 0.8% to 8,266.48. 

The yield on 10-year German bonds edged lower to 2.30%, French bonds inched higher to 3.04%, the UK gilts edged up to 4.20%, and Italian bonds increased to 3.53%.

The euro edged lower to $1.08; the British pound inched higher to $1.29; and the U.S. dollar strengthened to 86.65 Swiss cents.

Brent crude increased $1.38 to $74.66 a barrel, and the Dutch TTF natural gas rose by €0.07 to €41.15 per MWh. 

 

Europe Stock Movers

WPP PLC increased 4.3% to 806.60 pence after the company reported organic revenue growth of 3.3% in the third quarter. 

L'Oreal SA declined 3.7% to €353.60 after the French cosmetic maker reported weaker-than-expected sales in the third quarter. 

Thales SA decreased 1.8% to €151.25 after the defense electronics maker reported a rise in orders and sales in the nine-month period. 

Deutsche Bank dropped 2.1% to €15.97 after the German bank returned to profit in the third quarter but flagged credit risks. 

Revenue in the third quarter increased 5% to €7.5 billion, and pre-tax profit excluding Post Bank litigation advanced 6% to €1.8 billion from €1.7 billion. 

Provision for credit losses increased to €494 million from €245 million, indicating softer macroeconomic conditions. 

ATOSS Software decreased 0.6% to €131.20 after the German workforce management company reported higher revenue in the nine-month period. 

Revenue increased 14% to €125.9 million from €110.3 million, driven by a 37% jump in cloud services revenue to €52.7 million.

The company estimated 2024 revenue of €170 million, an operating margin of 33%, and forecast 2025 revenue of at least €190 million and an operating margin of at least 30%. 

Ipsen SA dropped 0.7% to €114.30 despite the French biopharmaceutical company reporting a strong increase in revenue in the third quarter. 

Revenue increased 8.3% to €836.6 million, and the company lifted its 2024 constant-currency revenue growth estimate to 8% from 7% and core operating margin to increase to 31% from 30%. 

Air Liquide decreased 1.2% to €169.18 after the industrial gas supplier reported third quarter revenue in line with market expectations.