(ABM FN-Dow Jones) European stock markets ended with sharp losses on Tuesday, following disappointing quarterly figures and concerns about the European economy following Donald Trump’s victory in the United States.
The Stoxx Europe 600 index lost 2.0 percent to 502.23 points. The German DAX recorded a loss of 2.1 percent to 19,033.64 points. The French CAC 40 fell 2.7 percent to 7,226.98 points. The British FTSE fell 1.2 percent to 8,025.77 points.
A profit warning from Bayer sent the pan-European Stoxx 600 and the DAX significantly lower. According to Frank Vranken of Bank Edmond de Rothschild, there were also doubts about the German economy and the euro zone as a whole.
The expert pointed to a report in which Goldman Sachs cut growth prospects for the eurozone and predicted more interest rate cuts. The opposite was true for the US. “The US market is priced for perfection, while European stocks are priced for a major downturn,” Vranken said.
Wall Street also fell slightly into the red on Tuesday, while losses in Europe increased. The American stock markets ended higher on Monday, setting new records, just like before the weekend. The S&P 500 closed above 6,000 points for the first time in history.
On a macroeconomic level, it was announced on Tuesday that the ZEW index, which measures economic sentiment in Germany, fell again in November. The index went from 13.1 in October to 7.4 in November. An increase to 13.3 was actually expected.
Final inflation figures from Germany confirmed that monetary depreciation increased in October, from 1.6 to 2.0 percent on an annual basis.
In the United Kingdom, unemployment rose from 4.0 to 4.3 percent in September. Much higher than expected, according to ING. Meanwhile, British wage growth remains stuck at between 4.5 and 5.0 percent. “A further decline is coming, but not immediately. For the time being, the Bank of England remains cautious,” ING said.
The euro/dollar fell further, by 0.6 percent to 1.0598. The dollar continues to benefit from the so-called Trump trade, according to UBS. According to colleagues at ING, the currency pair seems ready to test the 1.0600, bringing the 1.05 that the bank expects before the end of this year into view.
Oil prices rose slightly after Monday’s sharp decline in response to disappointing stimulus measures and weak macro data from China. OPEC again lowered expectations for oil demand growth in its monthly report on Tuesday.
Bond yields traded higher on Tuesday, with the US ten-year yield rising 12 basis points to 4.434 percent and the ten-year Bund yield rising 4 basis points to 2.368 percent. On Tuesday it was announced that the German elections will probably take place in February next year.
Bitcoin rose to $90,000 on Monday, but then fell again to below $87,000.
Company news
Shares of Bayer fell 14.5 percent in Frankfurt after the company warned of price pressure in crop protection and a weaker agricultural market. Bayer lowered adjusted EBITDA guidance. A bright spot is the pharmaceutical division, which can end up at the top end of the profit forecast for this year, according to Bayer.
In addition to Bayer, Brenntag also had a bad day. The share lost more than 8 percent after figures. Brenntag has concluded that a premature split of its divisions will not create value for its shareholders, Stifel analysts wrote in a report.
BASF also lost more than 4 percent.
Infineon closed with a profit of 3.7 percent. The semiconductor company became more cautious about 2025, but was positive about AI.
Furthermore, Rheinmetall gained 1.6 percent on the German stock exchange.
In Paris, Infineon’s sector peer STMicroelectronics gained 1 percent. Furthermore, there were hardly any winners in the CAC 40. Luxury shares LVMH and Kering were under pressure with losses of more than 4 to more than 6 percent.
European luxury companies are being hit by threatened tariffs on Chinese goods following Donald Trump’s victory in America, according to Morningstar’s Jelena Sokolova.
In Amsterdam, ASML and ASMI rose slightly and Besi ended 3.5 percent higher. Furthermore, there were no risers in the AEX.
There were no gains in Brussels, but Argen-X kept the damage limited, with a loss of 0.1 percent. Azelis and Syensqo lost more than 4 percent.
Wall Street
The American stock markets were lower around the close in Europe, with a loss of 0.4 percent for the S&P 500.
Source: ABM Financial News ABM Financial News is a supplier of stock market news, video and data, both for real-time trading platforms and dealing rooms as well as for online and offline media publications. The information in this article is not intended as professional investment advice or as a recommendation to make certain investments.
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Stock Market Madness: A Comedic Take on Europe’s Gloomy Day
(ABM FN-Dow Jones) Well, hold onto your portfolios, folks! European stock markets have taken a tumble that would make even the bravest skydiver think twice. On Tuesday, markets ended with what we can only describe as “sharp losses” — and not just the kind you get after a bad haircut!
Market Declines: A Symphony of Red
The Stoxx Europe 600 index lost a staggering 2.0 percent, landing at 502.23 points. And don’t even get me started on the German DAX, which recorded a loss of 2.1 percent, while the French CAC 40 fell by 2.7 percent! It was like watching a herd of elephants in a china shop, and let’s just say the china didn’t stand a chance.
Whodunnit? A Profit Warning from Bayer
So, what caused this market mayhem? A little thing called a profit warning from Bayer! It seems like that’s all it takes these days — a good ol’ fashioned warning, and suddenly everyone’s throwing their stocks out the window. Frank Vranken of Bank Edmond de Rothschild pointed fingers at that pesky economic sentiment, noting doubts about Germany’s economic prowess. Who knew economics could evoke such existential dread?
The US vs. Europe: A Tale of Two Markets
Meanwhile, across the pond, Wall Street was having a bit of a pity party too, but only slightly so — seated in the corner with a loss of 0.4 percent on the S&P 500. The Americans are living in a world where markets are “priced for perfection.” Wish I could say the same for my hairline!
Macro Facts & Figures: Oh, How We Fall
On the macroeconomic front, Germany’s ZEW index is sending us further down the rabbit hole — plunging from 13.1 to 7.4 in November. Alarm bells should be ringing! And inflation? That’s jumped from 1.6 to 2.0 percent. Looks like our wallets had better be prepared for a little more light breathing.
Currency Shenanigans: The Euro Drops Like It’s Hot
The euro is getting knocked about too, dropping 0.6 percent to 1.0598 against the dollar due to the oh-so-familiar “Trump Trade.” If the dollar had arms, it would be doing a victory dance right now! But with the euro testing the waters at 1.0600, I’m just hoping it doesn’t dive into 1.05 before the year’s end.
Oil & Bitcoin: The Wild Ride Continues
Over in the commodities corner, oil prices rose slightly after a dramatic drop. OPEC is lowering expectations like an underperforming magician. Meanwhile, Bitcoin danced from $90,000 to below $87,000 — a price tag that makes my childhood game of Monopoly feel like chump change!
Company News: Bayer’s Rock Bottom
In corporate land, Bayer dropped 14.5 percent, and let me tell you, it’s a long way down! The world is watching as they warn of price pressures in agriculture like a soap opera climactic moment. Brenntag wasn’t far behind with a loss of more than 8 percent. At this rate, someone might need to check the thermostat – the market is freezing over!
Wall Street’s Departure
As Europe closed up shop, American markets felt a little down but still clinging to their records. Let’s be honest: anyone who acts like they’ve got it all together while secretly sweating is just looking for a way to avoid confronting the chaos of the world, am I right?
In Conclusion: The Comedy of Errors
This latest financial fiasco feels like an episode of a sitcom gone terribly wrong. The sad, yet hilarious reality is that stock markets can swing faster than a toddler on a sugar high. And if history tells us anything, there’s always another plot twist lurking just around the corner. Keep your helmets on, because this ride isn’t over yet!
With stock prices plummeting, and economic uncertainties looming large, we sit back and wonder: is it time to buy the dip or dig a hole and hide? Stay tuned!
(ABM FN-Dow Jones) European stock markets experienced significant declines on Tuesday, largely influenced by disappointing quarterly financial reports and escalating concerns about the stability of the European economy in the wake of Donald Trump’s electoral triumph in the United States.
The Stoxx Europe 600 index plummeted by 2.0 percent, settling at 502.23 points, while Germany’s DAX index dropped 2.1 percent to 19,033.64 points. Meanwhile, the French CAC 40 faced a steeper decline of 2.7 percent, closing at 7,226.98 points, and the British FTSE saw a 1.2 percent decrease, finishing at 8,025.77 points.
A warning from Bayer regarding profits significantly impacted the pan-European Stoxx 600 and the DAX, propelling them sharply lower. Frank Vranken of Bank Edmond de Rothschild expressed concerns regarding the overall health of the German economy and the eurozone. He highlighted a recent report from Goldman Sachs that slashed growth forecasts for the eurozone, indicating the likelihood of upcoming interest rate cuts.
Conversely, the US market continues to show robust performance. “The US market is priced for perfection, while European stocks are priced for a major downturn,” noted Vranken, emphasizing the contrasting outlooks for the two markets.
The US stock markets saw slight declines on Tuesday, following a record-setting performance the previous day. The S&P 500 had closed above 6,000 points for the first time in history, showcasing strong gains ahead of the midweek trading.
On a macroeconomic front, the latest report unveiled on Tuesday indicated a worrying drop in the ZEW index, which gauges economic sentiment in Germany. The index fell from 13.1 in October to a mere 7.4 in November, contradicting expectations of an increase to 13.3.
Final inflation figures out of Germany corroborated the trend of monetary depreciation, which saw a rise from 1.6 to 2.0 percent year-on-year in October, indicating heightening inflationary pressures.
In the United Kingdom, unemployment rates rose considerably from 4.0 to 4.3 percent in September, defying expectations noted by ING. Despite this, wage growth in Britain has stagnated between 4.5 and 5.0 percent. ING predicted a further decline in employment rates looming ahead, although there is no immediate crisis; the Bank of England remains cautious amid these turbulent economic signals.
The euro/dollar exchange rate witnessed a further decline, dropping by 0.6 percent to 1.0598. The dollar continues to gain strength from the so-called Trump trade, as observed by UBS. According to analysts at ING, the currency pair appears poised to test the 1.0600 mark, which could bring the anticipated decline to 1.05 into clearer focus before year’s end.
In the commodities market, oil prices experienced a slight rebound after a sharp drop on Monday, attributed to disappointing stimulus measures and lackluster macroeconomic data originating from China. Additionally, OPEC revised down its growth expectations for oil demand in its monthly report.
Bond yields registered increases on Tuesday, with the yield on US ten-year bonds rising by 12 basis points to 4.434 percent, while the German Bund yield saw a 4 basis-point increase to 2.368 percent. In politics, it was announced that German elections are likely to occur in February next year.
Bitcoin, after peaking at $90,000 on Monday, fell back below $87,000 as profit-taking emerged among investors.
Company news
Shares of Bayer tumbled 14.5 percent in Frankfurt following its announcement about experiencing price pressure in its crop protection segment and a deterioration in the agricultural market. The company has revised its adjusted EBITDA guidance downwards, although its pharmaceutical division remains a potential bright spot, positioned to reach the higher end of its profit forecast for the year.
Brenntag also encountered a rough trading day, witnessing a decline of more than 8 percent following its financial disclosures. Analysts from Stifel noted that Brenntag has determined a premature division split would fail to generate shareholder value.
BASF’s shares fell by over 4 percent in reaction to these broader market concerns.
In contrast, semiconductor giant Infineon saw its shares close up by 3.7 percent despite caution about its outlook for 2025; however, the company retains a positive stance on advancements in artificial intelligence.
Additionally, Rheinmetall managed to gain 1.6 percent on the German exchange.
In Paris, STMicroelectronics, a peer of Infineon, increased by 1 percent. However, the CAC 40 had few positive performers as luxury brands LVMH and Kering recorded losses ranging from more than 4 to over 6 percent.
European luxury companies are facing headwinds due to potential tariffs on Chinese goods, a situation exacerbated by the political climate following Trump’s victory, according to insights from Morningstar’s Jelena Sokolova.
In Amsterdam, both ASML and ASMI posted slight gains, although Besi surged 3.5 percent higher. Overall, the AEX index lacked any significant upward movements.
Brussels saw no advances in the market, although Argen-X managed to mitigate losses with a minimal decline of 0.1 percent. In contrast, Azelis and Syensqo faced declines exceeding 4 percent.
Wall Street
The American stock markets turned lower as trading wrapped up in Europe, with the S&P 500 experiencing a loss of 0.4 percent.
### Stock Market Madness: A Comedic Take on Europe’s Gloomy Day
*(ABM FN-Dow Jones) Well, hold onto your portfolios, folks! European stock markets have taken a tumble that would make even the bravest skydiver think twice. On Tuesday, markets ended with what we can only describe as “sharp losses” — and not just the kind you get after a bad haircut!*
—
### Market Declines: A Symphony of Red
The Stoxx Europe 600 index lost a staggering 2.0 percent, landing at 502.23 points. And don’t even get me started on the German DAX, which recorded a loss of 2.1 percent, while the French CAC 40 fell by 2.7 percent! It was like watching a herd of elephants in a china shop, and let’s just say the china didn’t stand a chance.
—
### Whodunnit? A Profit Warning from Bayer
So, what caused this market mayhem? A little thing called a profit warning from Bayer! It seems like that’s all it takes these days — a good ol’ fashioned warning, and suddenly everyone’s throwing their stocks out the window. Frank Vranken of Bank Edmond de Rothschild pointed fingers at that pesky economic sentiment, noting doubts about Germany’s economic prowess. Who knew economics could evoke such existential dread?
—
### The US vs. Europe: A Tale of Two Markets
Meanwhile, across the pond, Wall Street was having a bit of a pity party too, but only slightly so — seated in the corner with a loss of 0.4 percent on the S&P 500. The Americans are living in a world where markets are “priced for perfection.” Wish I could say the same for my hairline!
—
### Macro Facts & Figures: Oh, How We Fall
On the macroeconomic front, Germany’s ZEW index is sending us further down the rabbit hole — plunging from 13.1 to 7.4 in November. Alarm bells should be ringing! And inflation? That’s jumped from 1.6 to 2.0 percent. Looks like our wallets had better be prepared for a little more light breathing.
—
### Currency Shenanigans: The Euro Drops Like It’s Hot
The euro is getting knocked about too, dropping 0.6 percent to 1.0598 against the dollar due to the oh-so-familiar “Trump Trade.” If the dollar had arms, it would be doing a victory dance right now! But with the euro testing the waters at 1.0600, I’m just hoping it doesn’t dive into 1.05 before the year’s end.
—
### Oil & Bitcoin: The Wild Ride Continues
Over in the commodities corner, oil prices rose slightly after a dramatic drop. OPEC is lowering expectations like an underperforming magician. Meanwhile, Bitcoin danced from $90,000 to below $87,000 — a price tag that makes my childhood game of Monopoly feel like chump change!
—
### Company News: Bayer’s Rock Bottom
In corporate land, Bayer dropped 14.5 percent, and let me tell you, it’s a long way down! The world is watching as they warn of price pressures in agriculture like a soap opera climactic moment. Brenntag wasn’t far behind with a loss of more than 8 percent. At this rate, someone might need to check the thermostat – the market is freezing over!
—
### Wall Street’s Departure
As Europe closed up shop, American markets felt a little down but still clinging to their records. Let’s be honest: anyone who acts like they’ve got it all together while secretly sweating is just looking for a way to avoid confronting the chaos of the world, am I right?
—
### In Conclusion: The Comedy of Errors
This latest financial fiasco feels like an episode of a sitcom gone terribly wrong. The sad, yet hilarious reality is that stock markets can swing faster than a toddler on a sugar high. And if history tells us anything, there’s always another plot twist lurking just around the corner. Keep your helmets on, because this ride isn’t over yet!
With stock prices plummeting and economic uncertainties looming large, we sit back and wonder: is it time to buy the dip or dig a hole and hide? Stay tuned!