Saturday, October 26, 2024
Finance Funds Update
Stock Markets

Europe’s STOXX 600 ends week higher as tech stocks rebound

October 18, 2024


  • Luxury stocks aid gains on France’s CAC 40
  • Elisa slumps on unexpected Q3 revenue fall
  • Goldman Sachs slashes STOXX 600 2024 earnings growth forecast
  • STOXX 600 up 0.2%

Oct 18 (Reuters) – Europe’s STOXX 600 ended higher on Friday, as tech stocks made a strong comeback at the end of a bumpy week, while the European Central Bank’s rate cut and a flurry of corporate earnings helped the index deliver a second straight week of gains.

The STOXX 600 (.STOXX), opens new tab closed up 0.2% as the tech sector (.SX8P), opens new tab led gains with a 2% jump.
That cut the weekly loss for the tech index to 6%, but it remained the worst-performing sector this week after ASML’s (ASML.AS), opens new tab weak 2025 sales forecast sparked a rout in chip stocks globally.
The computer chip equipment maker’s shares were up 1% on Friday, while chip stocks Soitec SA (SOIT.PA), opens new tab and BE Semiconductor Industries (BESI.AS), opens new tab were up 5.6% and 2.8%, respectively.
Shares in tech companies lost 4% this week as ASML's profit warning led to a sell-off
Shares in tech companies lost 4% this week as ASML’s profit warning led to a sell-off
Basic resources shares (.SXPP), opens new tab climbed 1.4%, boosted by strong copper prices.
The luxury stocks index (.STXLUXP), opens new tab rose 1.1% after a sell-off earlier this week following LVMH’s (LVMH.PA), opens new tab weak third-quarter sales.
With LVMH, other luxury giants such as Gucci-owner Kering (PRTP.PA), opens new tab and Hermes (HRMS.PA), opens new tab rose 3.5% and 1% respectively, aiding France’s main CAC 40 index (.FCHI), opens new tab that gained 0.4%.
Brunello Cucinelli (BCU.MI), opens new tab rose 2.6% following the Italian luxury group’s strong nine-month revenue performance.
However, brokerage Goldman Sachs slashed its 2024 earnings growth forecast for Europe’s STOXX 600 index (.STOXX), opens new tab to 2% from 6%, citing risks from rising corporate taxes and potential trade tariffs.
On the policy front, the ECB trimmed its interest rates to 3.25% on Thursday. Sources told Reuters a fourth cut in December was likely unless key data turned south by then.

The STOXX index hit record highs multiple times earlier this year, but has struggled to make any gains since mid-May as sluggish economic growth and weak Chinese demand held back investors, despite European stocks trading at cheaper valuations than their U.S. peers.

“The particular point of vulnerability for Europe, is that the economic downside looks to be much riskier than in the U.S., so trend growth is slower and you’re much more vulnerable to downside risks and shocks,” said Daniel Murray, deputy CIO & global head of research at EFGAM.

Elisa (ELISA.HE), opens new tab fell 4.7% after the Finnish telecom company’s third-quarter revenue missed expectations, while Swedish medical equipment maker Getinge (GETIb.ST), opens new tab dropped 5% after third-quarter core earnings missed forecasts.

Sign up here.

Reporting by Paolo Laudani in Gdansk, Ankika Biswas and Johann M Cherian in Bengaluru; Editing by Savio D’Souza and Mark Potter

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Purchase Licensing Rights



Source link

Leave a reply

Leave a Reply

You Might Also Like