Old Continent equities close in red this second week of the current earnings season. The balance sheets of European companies have been difficult to digest in some cases, this week investors have chosen for selling its shares in Europe. The Spanish stock market closes with a decrease of 0.95% in the weekly count, at 11,812 points, without managing to recover to the desired 12,000 points. While on the other side of the Atlantic, Wall Street manages to limit the declines at the end of the week, the seventh consecutive rise on the stock market for some indices.
This week started with bad foot in full accounting season on both sides of the Atlanticwith investors cautious due to the proximity to the United States elections, which will be just before the next meeting of the Federal Reserve. But despite that, this Thursday “lThe stock markets were gaining momentum in a day intense in results, tesla, HermesKering, renault, Unilever, Danoneamong others”, highlights Bankinter, which were accompanied by macroeconomic results. The entity highlights that ““European PMI data came out well, but without altering the economic outlook.” Nevertheless, This rebound was not enough to put European indices in positive territory on a weekly basis.
However, Wall Street does manage to put itself on positive ground for the European closure as it has found a push unexpected in Tesla’s spectacular results. The market happily welcomed the surprising growth of Elon Musk’s signature, after having disappointed in previous editions, which led the company to increase the company’s share price by 20%. The climb to all gas of the automobile company has led to the two main selectives in the country, the Nasdaq 100 and the S&P 500, to limit their falls and put themselves on positive ground in the weekly calculation. The technology index takes the lead and scores 0.8%, followed by the US benchmark, which at the close of Europe was practically in tables in this period. The industrialist Dow Jones lags behind its counterparts, lose 2% in the stock market on a weekly basis.
The analyst and manager of Ecotrader, Joan Cabrero, explains that the increases in the Big Apple will continue until the small cap benchmark, the Russell 2000, reach its historical levels of 2021, from which it is still 10% away. “That bullish journey until crossing said barrier and completing aces poker in the US It is what fuels my optimism,” explains Cabrero, and insists that “there will be no cause for concern as long as key supports are not lost, such as the September lows (which I have called the yellow line) and the August lows (red line).”
The French stock market is the most affected in the Old Continent on a weekly basis. The Cac 40 sees its price decline by 1.5% in this period, which leads the index to enter negative territory at an annual level: it marks a fall of 0.5% in 2024. For its part, the EuroStoxx 50 falls by 1% in the week. Although the impact of the results of the country’s main luxury brands they could have caused more of a dent in the prices of both indices.
Kering and L’Oréal have reiterated the impact of the drop in sales in China, which had already shown the largest European capital: Louis Vuitton. The Gucci Matrix has seen its profits fall by 15% in this third quarter and for the first time in its history it is a sale recommendationwhile the cosmetics firm sees a cooling in the growth of its accounts. Instead, Hermes beat analysts’ expectations by increasing salesswimming countercurrent of the sector.
The most bullish and bearish
The rest of the indices are also not saved of the declines in its price, the Italian FTSE Mib fell 1.3% weekly. While the German Dax and the Ibex fell 1% in this period. This week, the Spanish stock market received the first results from Bankinter and Iberdrola, which have not been well received by the market, falling 3.6% and 0.8%, respectively. Still, the red lanterns of the week are Solaria, which fell 7%, Sacyr and Ferrovial, which fell 4.5% and 4.1%, respectively. Only 10 Ibex 35 firms end up positive this weekled by the pool manufacturer, Fluidra, which rose 3% and also with Grifols and Puig rising 2%.
With respect to currencies, the greenback became stronger; The Eurodollar exchange rate fell to 1.078 dollars per European currency, although it ended the week at around 1.08. While the Brent It has appreciated 1.5% since the beginning of the week, to 75.45 dollars per barrel.
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