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EU statistics push European stock market to fall
16:43 2022-11-17 UTC--5
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The leading stock indicators of Western Europe showed mainly a decrease on Thursday amid the release of new data for the region. In addition, investors continue to analyze corporate reporting from key European companies.

Thus, at the time of writing, the composite index of the leading European companies STOXX Europe 600 fell by 1.26% to 428.98 points.

The French CAC 40 fell 0.4%, the UK FTSE 100 also sank 0.4% and the German DAX rose 0.31%.

Rising and falling

The value of securities of the German engineering and technology group Siemens AG soared by 7.2%, rising to March highs. In the fourth quarter, the company increased its dividend on the back of better-than-market earnings growth. Siemens management cited high demand for industrial equipment and software as a key reason for the strong financial results. In addition, the company's management announced an optimistic forecast for the next year.

German steel giant ThyssenKrupp AG fell 1.6%. At the same time, in the fourth financial quarter, the company increased its net income by almost 3.5 times and announced the payment of dividends for the first time in four years on the back of a spectacular increase in steel and materials prices.

The market capitalization of British luxury goods maker Burberry Group Plc rose 0.05%. In the first half of the financial year, the English fashion house increased its pre-tax profit and revenue, confirmed its medium-term forecasts and introduced a new design strategy designed to increase sales.

British online retailer Ocado Group PLC plunged 6.1%.

Market sentiment

On Thursday, investors analyzed fresh data on consumer prices in the euro area. Thus, according to the final data, following the results of the past month, annual inflation in 19 states of the eurozone accelerated to a record 10.6% from September's 9.9%. At the same time, a preliminary assessment of experts showed an acceleration in consumer prices up to 10.7% per annum.

Commenting on the final October inflation figure, analysts said that difficult times await the European economy, given that the European Central Bank may continue to tighten monetary policy.

Meanwhile, the European Automobile Manufacturers Association (ACEA) reported that in the past month, car sales in 19 countries of the region soared in annual terms by 12.2% - up to 745,855. A sharp increase in the indicator was noted for the third consecutive month, before car sales fell for 13 consecutive months.

Treasury Secretary Jeremy Hunt is set to speak in England tonight and is expected to announce tax hikes and spending cuts to curb rising prices, close a £60bn public finance gap and restore investor confidence. Hunt's new program is billed as a fix on former Prime Minister Liz Truss's previous program.

On Thursday morning, NATO Secretary General Jens Stoltenberg announced that the cause of the explosion in Poland near the border with Ukraine was a missile of the Ukrainian air defense system. This statement significantly weakened the geopolitical risks that held back European investors from taking decisive steps.

Recall that on Tuesday in the world media there were reports of rocket attacks by Russia on the territory of Poland. The Russian Ministry of Defense denied this information, saying that the military from the Russian Federation did not strike at the settlements located near the Ukrainian-Polish border. A fired rocket is known to have killed two people in a Polish village near the border with Ukraine.

Meanwhile, US President Joe Biden said that America and its NATO allies are investigating the circumstances of the explosion, while admitting that the missile could not have been fired from Russia.

Trading results the day before

The leading stock indicators of Western Europe closed in the red zone on Wednesday amid the release of fresh statistics on consumer prices in the UK.

Thus, at the time of writing, the composite index of the leading European companies STOXX Europe 600 fell by 0.99% to 430.15 points.

The French CAC 40 shed 0.52%, the UK FTSE 100 shed 0.25% and the German DAX shed 1%.

British Internet food delivery company Deliveroo Plc tumbled 7.1% on news it was winding up operations in Australia due to intense competition in the local market.

Quotes of the French concern Alstom SA rose by 7.2%. In the first half of fiscal year 2022, the company reduced its net loss, increased revenue and recorded an increase in order volume.

The market capitalization of the British insurer Beazley Plc collapsed by 5.4%. The day before, the company's management spoke about plans to raise $457 million by selling new securities.

The share price of German energy equipment maker Siemens Energy soared 4.6% on a report that the company would not pay dividends for the current year on the back of a quarterly net loss. At the same time, weak financial results for July-September were attributed by Siemens management to high costs associated with the restructuring of the division in Russia, as well as problems in the wind turbine division of Siemens Gamesa.

British cruise operator Carnival Plc plunged 13.8%. The day before, the company announced that it plans to place convertible debt securities in the amount of $1 billion.

Quotes of the British outsourcing company Sage Group soared by 7.3%. In the past fiscal year, the company reduced its pre-tax profit, but recorded an increase in revenue.

The market capitalization of US-Irish consumer credit data analytics and reporting company Experian increased 0.4% on a higher-than-expected first-half earnings report.

British food maker Premier Foods gained 0.7% on the back of higher half-year adjusted earnings.

The value of British property developer British Land sank 2%. The day before, the company reported a drop in the value of its facilities due to the pessimistic economic outlook that put pressure on the British property market.

On Wednesday, European investors analyzed the latest data on consumer prices in England. Thus, according to the information of the National Statistical Office of Great Britain, following the results of the past month, annual inflation in the country accelerated to 11.1%, which was a record since 1981. In September, this figure was 10.1%.

By the way, economists predicted an increase in consumer prices only up to 10.7%. Experts cited rising electricity bills and food prices as the key reason for accelerating inflation in the UK.

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Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.