🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

European stocks weaken ahead of BOE, eurozone CPI; Deutsche Bank shines

Published 2024/02/01, 10:24
© Reuters.
EUR/USD
-
UK100
-
FCHI
-
DE40
-
SHEL
-
BAER
-
DBKGn
-
GC
-
LCO
-
CL
-
SNY
-
ADDYY
-
BNPQY
-

Investing.com - European stock markets fell Thursday, as investors digested the outcome from the Federal Reserve’s latest meeting and more corporate earnings ahead of the release of eurozone inflation data and the Bank of England’s latest monetary policy decision. 

At 03:10 ET (08:10 GMT), the DAX index in Germany traded 0.4% lower, the CAC 40 in France traded down 0.8% and the FTSE 100 in the U.K. fell 0.6%.

Bank of England meeting, eurozone CPI in focus

The Bank of England is the latest major central bank to hold a policy-setting meeting, and is widely expected to hold interest rates unchanged at elevated levels later Thursday.

Inflation remains above the central bank’s 2% target, but has dropped sharply from the 41-year high of 11.1% seen in October 2022, and thus policymakers could use this occasion to suggest that they are tentatively moving towards cutting interest rates.

The U.S. Federal Reserve kept interest rates unchanged late Wednesday, but Chairman Jerome Powell downplayed any hopes of early cuts, saying inflation is still running above the Fed's target and this would likely prevent policymakers from lowering rates at its next meeting in March.

The European Central Bank also kept its monetary policy unchanged last week, but sounded confident that inflation was coming under control, fuelling already widespread bets that policy easing could start in early spring.

Eurozone inflation data is scheduled for release later in the session, with the January consumer price index expected to fall to 2.7%, a drop from 2.9% the prior month.

Deutsche Bank shines with quarterly earnings

The banking sector will be in the spotlight in Europe Thursday, as the quarterly earnings season continues in full stride.

Deutsche Bank (ETR:DBKGn) stock rose 1% after the German lender’s fourth-quarter net profit came in well ahead of expectations, while announcing plans to hike share buybacks and dividends by 50%.

BNP Paribas (OTC:BNPQY) stock fell over 8% after the French banking giant’s quarterly earnings missed expectations, leading it to revise down its profit targets for 2025.

Julius Baer (SIX:BAER) stock fell 1.1% after the Swiss wealth manager reported hefty net credit losses linked to its exposure to property and retail giant Signa Holding, prompting CEO Philipp Rickenbacher to leave.

Additionally, Shell (LON:SHEL) stock rose 1% after the oil major reported a 2023 profit of $28 billion, ahead of expectations, allowing it to increase its dividend while announced a $3.5 billion share buyback program.

Sanofi (EPA:SASY) (NASDAQ:SNY) stock fell 2.2% after the French drugmaker's fourth-quarter operating income declined 5%, hit by competition for its established multiple sclerosis drug.

Adidas (OTC:ADDYY) stock fell over 8% after the German sportswear maker disappointed with its 2024 forecast, hit by limited profits from selling off its last stocks of Yeezy shoes after its break-up with Kanye West.

Crude steadies ahead of OPEC+ meeting

Oil prices traded in tight ranges Thursday, helped by the elevated tensions in the Middle East but amid caution ahead of the latest OPEC+ meeting.

By 03:10 ET, the U.S. crude futures traded 0.4% lower at $75.53 a barrel, while the Brent contract dropped 0.4% to $80.22 a barrel.

The Organization of Petroleum Exporting Countries and allies, known as OPEC+, is set to hold a meeting of the Joint Ministerial Monitoring Committee later in the day - its first major meeting of 2024.

The meeting is not expected to result in any changes to production, particularly after the difficulties the group had in agreeing output cuts late in 2023.

Additionally, gold futures fell 0.8% to $2,056.85/oz, while EUR/USD traded 0.3% lower at 1.0784.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.