European stock markets fell on Friday after investors reacted sharply to corporate earnings.
The pan-European Stoxx 600 was down 0.1% at 9:30 a.m. London time, with major bourses in the red. Sectors were mostly lower, with mining stocks down 2.5%. Health care stocks climbed 0.9%.
Autos stocks dropped 3.7% on Thursday as Tesla’s fall in net income and announcement of further price cuts spooked the market.
German software firm SAP on Friday reported higher revenue and operating profit, ahead of a consensus forecast from the company. It revised annual profit guidance downward due to a divestment.
Holcim, the Swiss maker of building materials, posted a rise in revenue and profit that was ahead of expectations and raised its guidance.
Flash purchasing managers’ index figures from S&P Global and Hamburg Commercial Bank showed the fastest growth in France’s private sector since May 2022, though this was powered by services and factory production fell. Germany’s business upturn was also led by services, though manufacturing output increased modestly.
U.K. retail data showed a 0.9% fall in sales volumes for March, below forecasts of a 0.5% decline, which retailers blamed in part on the unusually wet weather. Consumer confidence ticked higher, a widely watched GfK survey showed, though the authors noted “continuing concerns among consumers about their personal financial situation.”
U.K. inflation figures earlier in the week came in hotter than expected, with headline inflation at 10.1% and food and non-alcoholic beverages up 19.2% on the previous year.
Investors also have an eye on May’s monetary policy meetings, where the Federal Reserve and Bank of England are widely expected to enact one more interest rate hike before pausing. Comments from European Central Bank policymakers suggest they may continue beyond that, with its president, Christine Lagarde, saying Thursday the ECB “still has a bit of way to go” to bring back inflation toward its 2% target.
In Asia-Pacific, stock markets closed broadly lower, while U.S. stock futures were flat.
Source: https://www.cnbc.com/2023/04/21/-european-markets-open-to-close-earnings-data-and-news-.html
