European stocks marginally lower; Mercedes falls, German Ifo impresses
European stock markets traded marginally lower Friday, with third-quarter corporate earnings in the spotlight amid concerns surrounding the region's economic outlook.
At 10:00 ET (14:00 GMT), the DAX index in Germany traded largely unchanged, while the CAC 40 in France fell 0.1% and the FTSE 100 in the U.K. traded 0.1% lower. German Ifo rises more than expected
French consumer confidence slipped slightly in October, from the prior month, data released earlier Friday showed, but there was slightly better news from Germany, the eurozone's largest economy.
German business morale improved more than expected in October, with the Ifo institute's business climate index rising to 86.5 in October from 85.4 the previous month, and above the 85.6 forecast.
However, the German economy is struggling, with third-quarter gross domestic product due next week. A technical recession - defined as two consecutive quarters of contraction - is firmly on the cards.
The European Central Bank has cut interest rates three times already this year, all by 25 basis points, and speculation is growing that ECB policymakers will agree to a larger rate cut at the next meeting.
The annual IMF-World Bank meetings enter the penultimate day later Friday, and traders will be looking for any comments on future monetary policy. Mercedes hit by Chinese woe
The quarterly corporate earnings season remains in focus in Europe as the week draws to a close.
Mercedes-Benz (OTC:MBGAF ) stock fell 1% after the German auto giant said earnings in its core car division plunged in the third quarter as Chinese consumers continued to cut back on luxury goods.
Valeo (EPA:VLOF ) added to the auto sector's woes, with the automotive supplier dropping almost 10% after cutting its annual sales guidance for the second time this year.
Remy Cointreau (EPA:RCOP ) stock fell 0.7% after the French spirits maker reported a worse-than-expected fall in quarterly sales amid worsening market conditions in China.
Electrolux (ST:ELUXb ) stock slumped 16% after missing third-quarter earnings expectations on continuing U.S. losses and rising competition from China.
On the other hand, Sanofi (NASDAQ:SNY ) stock rose 1.6% after the French drugmaker posted stronger earnings growth than expected in the third quarter, helped by earlier-than-anticipated sales of seasonal vaccines.
Eni (BIT:ENI ) stock rose 1.7% after the Italian energy group announced plans to increase its share buyback program after reporting better than expected third-quarter results.
NatWest Group (LON:NWG ) climbed 2% after the UK bank reported a 25% increase in profits in the three months to September and upgraded its outlook, buoyed by increased lending and a focus on operational efficiency.
Across the pond, attention is turning to next week’s earnings, with results due from the tech giants Alphabet (NASDAQ:GOOGL ), Amazon (NASDAQ:AMZN ), Apple (NASDAQ:AAPL ), Meta (NASDAQ:META ) and Microsoft (NASDAQ:MSFT ) over a three-day period from Tuesday. Crude set for weekly gains
Oil prices rose Friday, on track for a weekly gain as tensions in the crude-rich Middle East ensured a risk premium remained within the market.
By 10:00 ET, the Brent contract climbed 1.4% to $75.45 per barrel, while U.S. crude futures (WTI) traded 1.5% higher at $71.22 per barrel.
Both contracts are on course to register gains of around 2% this week as traders await Israel's response to a missile attack by Iran on Oct. 1 that could disrupt from the world’s top oil-producing region.
U.S. and Israeli officials are set to restart talks for a ceasefire and the release of hostages in Gaza in the coming days, but hopes are not high as a number of previous attempts to reach a deal have failed.
Source: Investing.com
