06/11/2023 – 13:52
European stock markets closed mostly lower this Monday, the 6th, in a start to the week that did not continue the strong rises of recent days. Some sectors had specific boosts, such as oil companies with the increase in barrel prices on the international market, but even so, the general movement was one of earnings correction.
The pan-European Stoxx 600 index fell 0.15% to 443.58 points, after rising more than 3% last week, its best performance since March, thanks to encouraging corporate earnings and signs that the tightening process monetary policy may have come to an end in the United States and the United Kingdom.
According to Oanda analyst Craig Erlam, the start of trading this Monday was relatively subdued, with stock markets struggling to maintain the momentum of the second half of last week. “That said, the response didn’t seem particularly sustainable,” he says. “It was arguably exaggerated under the circumstances, but investors have been anxiously awaiting the turning point in the data. Perhaps they were premature on this occasion, but data from the coming weeks could prove otherwise”, says the analyst.
This Monday, in the euro zone, the services PMI fell to 47.8 in October, confirming the initial estimate. The same German PMI fell to 48.2 last month, but surpassed the previous reading. In any case, results below 50 indicate a contraction in services. Still in Germany, industrial orders saw an unexpected increase of 0.2% in September, thanks to external demand.
From the earnings season, the highlight goes to the Irish low-cost airline Ryanair, which reported this second increase in half-yearly profit and announced dividends for the first time. Ryanair shares jumped 3.93% in Dublin. Following the rise in oil prices, in the same city, Total’s shares advanced 0.63%, but the CAC 40 fell 0.48%, to 7,013.73 points. In the British capital, BP shares rose 0.38%, and helped the FTSE 100 to remain stable, at 7,417.76 points. In Frankfurt, the DAX fell 0.35%, to 15,135.97 points. In Milan, the FTSE MIB fell 0.29%, to 28,592.60 points. In Madrid, the Ibex 35 fell 0.58%, to 9,240.40 points. And in Lisbon, the PSI 20 fell 0.19%, to 6,389.93 points.
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