Why it matters
- The STOXX 600 was at about 633.66 around 12:42 GMT on Friday, Oct. 23, down 0.64% from Thursday, and the Euro STOXX 50 was down 0.77%, Yahoo Finance data showed, as investors weighed rising oil prices and Middle East tensions against company results, Trading Economics said.
- Kering was down about 14.5% after flat third-quarter revenue, Volvo Cars about 25.3% after a sharp drop in China sales and Safran about 8.4%, while L'Oréal rose about 5.5% on upbeat sales, Yahoo Finance data and Trading Economics showed.
- France's 10-year yield was about 5.06%, near a 24-year high, ahead of Moody's review of the country's Aa3 rating, which Trading Economics said is due Friday.
Session recap: what happened in this region's trading day, with sources.
European stocks fell on Friday, Oct. 23, as investors weighed rising oil prices amid escalating Middle East tensions against a fresh batch of company earnings, and flash surveys showed business activity slowing across the euro area, Trading Economics said. The STOXX 600 was at about 633.66 around 12:42 GMT, down 0.64% from Thursday's close, and the Euro STOXX 50 was down 0.77%, according to Yahoo Finance data.
| Market, about 12:42 GMT | Level | Change vs. Thursday |
|---|---|---|
| STOXX Europe 600 | 633.66 | −0.64% |
| Euro STOXX 50 | 6,040.42 | −0.77% |
| DAX (Germany) | 25,141.99 | −0.91% |
| FTSE 100 (U.K.) | 10,659.42 | −0.61% |
| CAC 40 (France) | 7,749.27 | −0.79% |
| FTSE MIB (Italy) | 48,108.97 | −0.57% |
| IBEX 35 (Spain) | 18,831.90 | −0.43% |
| SMI (Switzerland) | 14,471.52 | −0.53% |
Source: Yahoo Finance chart data. Levels are intraday, delayed and approximate; changes are from Thursday, Oct. 22, closes.
Why are European stocks falling today?
Flash purchasing managers' surveys showed private-sector growth slowing in both the euro area and Germany, while French activity contracted, Trading Economics said. France's composite PMI fell to 48.4 in October from 51.1 in September, well below forecasts of 50.5, it said; a reading below 50 signals contraction. Concerns about demonstrations planned for Saturday in France and Italy also weighed on Frankfurt, it said. The Euro STOXX 50 was heading for a weekly loss of about 1.9%, and the STOXX 600 about 1%, Trading Economics said.
Thursday's session is in our Europe Thursday recap.
Which stocks are moving?
Kering was down about 14.5% around 12:42 GMT, Yahoo Finance data showed, after the Gucci owner's third-quarter revenue came in flat from a year earlier and fell about 1% on a like-for-like basis, Trading Economics said. Hermès fell about 3.2% to a four-year low, extending Thursday's drop after its results disappointed. Safran was down about 8.4% despite beating revenue growth forecasts, and Volvo Cars sank about 25.3% after a sharp decline in sales in China.
L'Oréal was up about 5.5% after third-quarter sales beat expectations, Yahoo Finance data and Trading Economics showed. Saab rose about 1.2% after better-than-expected results, supported by a deal to supply Gripen fighter jets to Ukraine. SAP was down about 0.6%.
How is the FTSE 100 trading?
The FTSE 100 was down about 0.61% around 12:42 GMT, Yahoo Finance data showed, heading for a weekly loss of more than 1.5%, Trading Economics said. Rolls-Royce fell about 2.5%, while Shell and BP gained as Brent crude headed for a third weekly rise. The GfK consumer confidence index fell 11 points to minus 24, its steepest drop since the pandemic, and retail sales fell 0.4% in September, it said.
What is happening with French bonds?
France's 10-year yield was about 5.06%, near a 24-year high, on concerns about public finances and social unrest, and its spread over German Bunds widened to about 170 basis points, the widest since the euro-area debt crisis, Trading Economics said. Investors await Moody's long-anticipated review of France's rating on Friday, it said; Moody's last set France at Aa3 with a negative outlook. Germany's 10-year Bund yield eased to about 3.34%, its lowest since Aug. 31, on safe-haven demand.
The euro was at about $1.1213 and the pound at about $1.3388 around 12:56 GMT, Yahoo Finance data showed.
What comes next for European markets?
The ECB's Governing Council meets Oct. 28-29 in Frankfurt, with the rate decision and a press conference on Oct. 29, according to the ECB's calendar. Officials are widely expected to leave rates unchanged, Trading Economics said. Asia's session is in our Asia Friday recap, U.S. futures and next week's key dates are in our day-ahead guide, and live levels are on the markets page.
Follow the rest of the trading day on our global market today page, with the latest Asia, Europe and Americas session recaps.
Sources
- Trading Economics, Euro area stock market
- Trading Economics, Germany stock market (DAX)
- Trading Economics, France stock market (CAC 40)
- Trading Economics, U.K. stock market (FTSE 100)
- Trading Economics, France 10-year bond yield, Germany 10-year bond yield and France credit rating
- European Central Bank, Meetings of the Governing Council
- Yahoo Finance, chart data for the STOXX Europe 600, Euro STOXX 50, DAX, FTSE 100, CAC 40, FTSE MIB, IBEX 35, SMI, Kering, Volvo Cars, Safran, L'Oréal, Hermès, Saab, SAP, EUR/USD and GBP/USD