Investing.com – European stock markets edged lower Tuesday, as investors digested more third-quarter corporate earnings amid uncertainty over global growth and the future path of interest rates.
At 09:455 ET (13:55 GMT), the in Germany traded 0.1% lower, the in France fell 0.1% and the in the U.K. dropped 0.2%.
Sentiment was weak in Europe as investors fretted over the state of the European economy, and that of the Chinese economy, a major export market, amid geopolitical and global interest-rate cut uncertainties.
SAP lifts FY targets
The focus Tuesday has been on the corporate sector, however, as the third-quarter earnings season hits full stride.
SAP (ETR:) stock soared over 3% after the German software company raised its full-year targets on strong cloud business in the third quarter, with artificial intelligence a key growth driver.
ASML (AS:) stock rose 1.4% after the CEO of the leading computer chip equipment maker said he expects that 2026 will be a growth year for the company.
InterContinental Hotels (LON:) stock rose 1% after the group posted third-quarter room revenue growth, but still noted a subdued U.S. market and weakness in China.
Randstad (AS:) sock rose 2.9% after the world’s largest employment agency, reported quarterly profit slightly ahead of expectations as trading conditions stabilized across some of its markets despite a challenging macroeconomic environment.
Saab (ST:) sock rose over 8% after the Swedish aerospace and defense company reported a rise in third-quarter operating earnings and affirmed its outlook for surging sales and profits this year.
IMF downgrades 2024 German growth forecast
Elsewhere, the International Monetary Fund cut its forecast for Germany, Europe’s biggest economy, while growth is expected in all the other G7 countries.
The IMF now sees the German economy stagnating in 2024, after previously forecasting 0.2% growth.
For 2025, the IMF forecast Germany’s economy would grow by 0.8%, having previously projected growth of 1.3%
Meanwhile, the eurozone economy is expected to grow by 0.8% in 2024 and 1.2% in 2025.
The European Central Bank cut interest rates last week, the central bank’s first back-to-back rate cut since 2011 amid concerns about economic activity in the region.
There was more good news as far as the UK was concerned, as the IMF raised its forecast for British economic growth this year to 1.1%, from 0.7%, citing lower inflation and a cut in Bank of England interest rates.
Crude rebounds despite demand worries
Oil prices rose Tuesday, overturning earlier losses amid uncertainty over global demand growth, particularly from China, the world’s top oil importer, continued to weigh.
By 06:55 ET, the contract climbed 1% to $75.03 per barrel, while futures (WTI) traded 1.2% higher at $70.88 per barrel.
International Energy Agency head Fatih Birol warned on Monday that economic weakness in China will continue to stunt global oil demand in the coming years.
Birol’s comments — made in an interview with Bloomberg — came after both the International Energy Agency and the Organization of Petroleum Exporting Countries recently cut their demand growth forecasts on concerns over China.
The tensions in the Middle East remain in focus, as US Secretary of State Antony Blinken headed to the region seeking to revive talks to end the conflict which has seen traders attach some risk premium to crude prices, on the prospect of supply disruptions in the region.
Source link : http://www.bing.com/news/apiclick.aspx?ref=FexRss&aid=&tid=6717eea2ad9547148019b86b061f2441&url=https%3A%2F%2Fuk.investing.com%2Fnews%2Fstock-market-news%2Feuropean-stocks-mixed-imf-report-quarterly-earnings-in-focus-3746044&c=13184941776310072529&mkt=de-de
Author :
Publish date : 2024-10-22 10:11:00
Copyright for syndicated content belongs to the linked Source.
