European stock markets ended in the red and Paris underperformed. This morning, the Shanghai Stock Exchange jumped more than 8% thanks to new measures to support the real estate market in the midst of a crisis. The Paris Stock Exchange suffered from the warning from Stellantis and the prospect of an 8 billion euro levy on large groups as well as a tax on share buybacks. Only 2 members of the CAC ended up. The index, which fell 2% to 7635.75 points, however gained 0.06% in September. The EuroStoxx50 lost 1.23% this Monday to 5,005.09 points.
Volkswagen (-94.88% to 94.88 euros) posted one of the biggest drops in the DAX40 and the Eurostoxx 50 after lowering its forecasts for 2024 on Friday for the second time in a few months, due to a disappointing performance in the passenger car segment. The struggling German manufacturer is now targeting a margin of around 5.6% in 2024, compared to 6.5 to 7% previously and a consensus of 6.5%. Annual turnover is expected to fall by 0.7% to 320 billion euros while the group initially targeted an increase of up to 5%.
Stellantis recorded the biggest drop in the CAC 40 index, with a fall of 14.74% to 12.40 euros. The car manufacturer has issued a heavy warning on its 2024 results: it now anticipates a current operating margin of between 5.5% and 7% compared to a “double-digit” current operating margin initially planned. UBS emphasizes that this warning was widely anticipated but that it surprises by its magnitude: the 2024 operating result should be 40% lower than the consensus. The latter amounted to around 8%-9% for the current operating margin.
The stainless steel producer We open (+4.13% to 28.26 euros) expects its adjusted Ebitda in the third quarter to be slightly higher than that of the second quarter (86 million euros). “This is due to stable volumes in a seasonally weaker quarter, balanced by improved hot rolling mill in Brazil and stable raw material prices which resulted in a slightly less positive inventory valuation compared to the previous quarter,” the company specifies this morning in a press release.
Today’s macroeconomic figures
In the second quarter, UK GDP grew by 0.7% year-on-year, compared to expectations of 0.9%. It was up 0.3% the previous quarter. Quarterly, GDP is also lower than expected: 0.5% compared to 0.6% expected after +0.7% the previous quarter.
Inflation stood at 0.7% in September in Italy at an annual rate compared to 1.1% in August and a consensus of 0.8%. In harmonized data, it fell to 0.8% at an annual rate after 1.2% in August.
Inflation slowed to 1.6% in September at an annual rate in Germany after 1.9% in August. The consensus was 1.7%. In harmonized data, it rose to 1.8% against 2% in August and a consensus of 1.9%.
The Chicago region’s purchasing managers’ index came in at 46.6 in September versus an expected 46.1. It stood at 46.1 in August.
Around 5:30 p.m., the euro lost 0.23% to 1.1141 dollars.
source : AOF
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