Oct 24 2024: European stock markets saw modest gains on Thursday as investors assessed a fresh round of third-quarter corporate earnings alongside key economic data.
As of 03:05 ET (07:05 GMT), Germany’s DAX index was up by 0.2%, while France’s CAC 40 and the U.K.’s FTSE 100 both gained 0.4%.
Spotlight on PMIs
Investors are closely watching preliminary Purchasing Managers’ Index (PMI) reports from major eurozone countries amid ongoing concerns about the region’s economic growth.
Business activity in the eurozone is expected to remain in contraction, which could pressure the European Central Bank (ECB) to continue cutting interest rates. The ECB has already implemented three rate cuts this year, each by 25 basis points, with expectations growing for a more significant reduction of 50 basis points in December.
ECB President Christine Lagarde emphasized caution on Wednesday regarding further rate cuts, but weaker PMI data may push the central bank toward more aggressive easing.
Barclays and Other Major Earnings
More third-quarter earnings were released on Thursday, providing additional data for investors to consider.
Barclays (LON: BARC) shares rose 2% after the British bank reported a sharp increase in net profit, driven by its investment bank’s strong performance in corporate dealmaking and trading.
Unilever (LON: ULVR) saw a 2% rise in its stock after reporting a boost in underlying quarterly sales, as new product innovations and slower price hikes helped attract more customers. This marks the company’s largest sales volume growth in over three years.
French luxury brand Hermès (EPA: HRMS) saw a 3% rise in stock value after posting a significant third-quarter sales increase, continuing to outperform competitors hurt by China’s economic slowdown. Its iconic luxury handbags remain highly sought after by affluent buyers.
Danone (EPA: DANO) gained 2.5% as the French food giant exceeded third-quarter sales expectations, bolstered by strong demand in North America and rising sales volumes.
Orange (EPA: ORAN) shares climbed 1.7%, with the French telecom company slightly surpassing profit forecasts for the third quarter, thanks to solid results in its Africa and Middle East operations.
On the U.S. front, Tesla (NASDAQ: TSLA) is in the spotlight after CEO Elon Musk projected a 20-30% increase in vehicle sales next year, reassuring investors about the company’s progress in its core electric vehicle business.
Oil Prices Rebound Amid Middle East Tensions
Oil prices recovered on Thursday, reversing losses from the previous session, as concerns grew that escalating conflict in the Middle East could disrupt oil supply.
By 03:05 ET, Brent crude futures had risen 1.1% to $75.80 a barrel, while U.S. crude (WTI) was up 1.3% at $71.66 a barrel.
The rise followed reports of Israeli airstrikes on the Syrian capital, Damascus, further intensifying fears of a broader regional conflict, including possible retaliation against Iran. Oil prices have gained nearly 4% this week, helping to offset last week’s 7% loss, which had been driven by worries over reduced demand from China and easing concerns about Middle East supply disruptions.
