Europe attempts a rebound with company results

2024-11-14 09:17:00

PARIS (Reuters) – The main European stock markets, apart from London, are trending slightly upwards on Thursday morning thanks to solid company results which take precedence over the uncertainties linked to Donald Trump’s protectionist policy.

In Paris, the CAC 40 rose 0.36% to 7,242.98 points around 08:40 GMT, after two consecutive sessions in the red. In London, the FTSE 100 lost further ground, falling 0.20%, under pressure from the decline in values ​​linked to basic resources. In Frankfurt, the Dax advances by 0.55%.

The EuroStoxx 50 index increased by 0.67% and the FTSEurofirst 300 by 0.13%. The Stoxx 600 gained 0.19%.

Futures contracts on Wall Street predict an increase of 0.07% for the Dow Jones, 0.06% for the Standard & Poor’s 500 and 0.01% for the Nasdaq.

Donald Trump intends, among other things, to deregulate the economy, lower taxes and impose new customs duties on imports, which is considered favorable for American companies, but could harm export values ​​in Europe and provoke a trade war with China.

The billionaire will also have a lot of room to implement his measures, with the Republicans having a majority in the House of Representatives, in addition to the Senate, according to Edison Research projections.

The potential impact of this policy, which has weighed on financial assets in Europe for more than a week, was somewhat relegated to the background on Thursday by the avalanche of company results.

In addition to the results, numerous economic and inflation indicators are on today’s agenda, which could give rise to a volatile session.

In terms of values, Scor jumped 7.22%, investors welcoming the end of the review of its assumptions in life and health reinsurance (“L&H”) while the group reported a net loss for the third quarter.

Thales falls by almost 1% after revealing its new financial objectives for the next four years.

Alstom (+1.93%) and Eiffage (+1.63%) are sought after their results.

In the rest of Europe, Burberry climbed 11.07% after the presentation of the group’s recovery plan by its new general director, which allowed the European luxury index (+0.19%) to recover. colors.

Deutsche Telekom advances by 2.55% thanks to the increase in its annual profit forecast.

Siemens jumped 7.18% after announcing record orders and fourth-quarter results above analyst consensus.

ASML rose 3.44%, the manufacturer of equipment for computer chips having announced on Thursday that it anticipated a turnover which should reach 44 to 60 billion euros by 2030, which suggests an average annual increase of 8 % to 14%.

(Written by Claude Chendjou, edited by Blandine Hénault)

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How might Trump’s proposed protectionist policies impact the future of European exports and overall market sentiment?

**Interview with Financial Analyst Sarah Johnson on the Recent Market Trends Post-Trump Election Victory**

**Interviewer:** Welcome, Sarah. The financial markets seem to be reacting in mixed ways since Donald Trump’s recent election victory. Can you explain the current situation in Europe regarding stock trends?

**Sarah Johnson:** Absolutely. Following Trump’s victory, there was immediate market volatility, especially for currencies like the euro and the pound. However, right now, we’re seeing a slight upward trend in most European stock markets, excluding London. This is largely attributed to positive earnings reports from companies, which are overshadowing concerns surrounding Trump’s anticipated protectionist policies.

**Interviewer:** Interesting. Can you break down what we’re seeing in specific markets, for example, in Paris and Frankfurt?

**Sarah Johnson:** Sure! As of this morning, the CAC 40 in Paris rose by 0.36%, which is a welcome change after a couple of sessions in the negative. Frankfurt’s DAX also saw gains, increasing by about 0.55%. This indicates that investors are finding optimism amid uncertainty. On the flip side, London’s FTSE 100 is struggling, down 0.20%, largely due to declines in the basic resources sector.

**Interviewer:** That’s a telling point. What can we attribute the rise in European indices to, given the uncertainty surrounding U.S. policies?

**Sarah Johnson:** The key factor here is earnings. Solid company results are driving investor confidence, suggesting that local companies are performing well despite global uncertainties. While Trump’s proposed deregulation and tax cuts may stimulate the U.S. economy, there’s concern that if he imposes tariffs, it could lead to a trade war that adversely affects European exports.

**Interviewer:** How do you see this playing out in the long term? Could we expect a shift in investor sentiment?

**Sarah Johnson:** It really depends on how U.S. policies unfold. If Trump follows through on protectionist measures, European markets could face significant headwinds, particularly in exports. However, if European companies continue to show strong earnings amidst this uncertainty, we may see sustained market resilience. Investors will be closely monitoring U.S.-Europe trade relations in the coming months.

**Interviewer:** Thank you, Sarah. Your insights shed light on a very complex situation. It’ll be interesting to see how this develops as we move forward.

**Sarah Johnson:** Thank you for having me!