European Markets Open Lower as Investors React to Earnings
European stocks began Wednesday in negative territory as investors digested a wave of corporate earnings results. The pan-European Stoxx 600 dropped approximately 0.45% shortly after the opening bell, with most sectors experiencing losses.
Here are some of the key market moves and corporate news making headlines:
<a href="https://time.news/eli-lillys-weight-loss-injection-explosive-device-for-the-german-health-system/" title="Eli Lilly's weight loss injection: explosive device for the German health system”>Novo Nordisk shares slid to a nine-month low, reaching levels last seen in January 2024. This decline followed the news that competitor Eli Lilly reported weaker-than-expected quarterly profits and reduced its adjusted profit guidance for the full year 2024. Eli Lilly’s stock tumbled as much as 10% in premarket trading. Novo Nordisk is expected to release its own third-quarter earnings next week.
Capgemini shares plummeted by as much as 8% after the French IT consulting firm announced a decrease in its full-year revenue target for 2024. The company now projects a revenue decline of 2% to 2.4% at constant currency, compared to the previously anticipated dip of 0.5% to 1.5%.
The euro zone showcased strong economic growth in the third quarter of 2024, with an expansion of 0.4%. This figure surpassed both the 0.3% growth recorded in the second quarter and economists’ expectations of a 0.2% increase.
Germany narrowly avoided a technical recession with a 0.2% third-quarter GDP increase. Projections from analysts had anticipated a 0.1% decline. While the second quarter’s GDP figures were revised downward to a 0.3% contraction from a previously reported 0.1% dip.
France’s GDP expanded by 0.4% in the third quarter of 2024, exceeding the 0.3% growth predicted by economists. The agency attributed this boost in part to the high-profile Paris Olympics and Paralympics held from July to September of this year.
Georg Fischer surged over 15%, marking the Swiss industrial group’s best day since October 2008, according to Reuters. Conversely, Italy’s Campari tumbled over 14% following a third-quarter earnings miss.
UK clothing retailer Next upgraded its annual profit guidance after exceeding expectations for third-quarter sales.
Aston Martin reported a smaller-than-expected loss for the third quarter, attributing its performance to improved operational efficiency and proactive management of supply chain disruptions.
Volkswagen’s third-quarter operating profit took a significant hit, falling by 42% due to increased fixed costs and substantial restructuring expenses.
- UBS posted stronger-than-anticipated third-quarter profits, citing progress in integrating the absorbed Credit Suisse assets.
These are just some of the highlights from a busy start to the European trading week. Continue following for further updates throughout the day.